##### 



Exhibit 13




---



##### 



of
 Financial Highlights
    
    
    1A Letter To Our Shareholders
    
    
    2Consolidated Balance Sheets
    
    
    10Consolidated Statements of Income
    
    
    11Consolidated Statements of Changes in Shareholders Equity
    
    
    12Consolidated Statements of Cash Flows
    
    
    13Notes to Consolidated Financial Statements
    
    
    14Reports of Independent Registered Public Accounting Firm
    
    
    45Managements Report on Internal Control over Financial Reporting
    
    
    47Managements Discussion and Analysis of
Financial Condition and Results of Operations
    
    
    48Quantitative and Qualitative Disclosures About Market Risk
    
    
    88Supplemental Financial Data: 10 -Year History
    
    
    92Performance Graph
    
    
    94Directors and Executive Officers
    
    
    95Senior Officers
    
    
    96Shareholder Information
    
    inside back cover




---



##### 



YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005(in thousands, except per share data)BALANCE SHEET SUMMARYAssets
    
    $
    8,926,577
    
    
    $
    10,057,791
    
    
    $
    8,458,740Deposits
    
    
    7,619,682
    
    
    
    8,704,675
    
    
    
    7,265,829Loans, net
    
    
    4,338,395
    
    
    
    4,096,686
    
    
    
    4,484,771Common shareholders equity
    
    
    789,397
    
    
    
    844,527
    
    
    
    689,775INCOME STATEMENT SUMMARYNet interest income
    
    $
    288,258
    
    
    $
    341,901
    
    
    $
    249,658Net income
    
    
    106,204
    
    
    
    189,444
    
    
    
    137,229Cash dividends paid to common shareholders (1)
    
    
    113,270
    
    
    
    46,139
    
    
    
    37,921PER SHARE DATA(2)Diluted earnings
    
    $
    1.85
    
    
    $
    3.28
    
    
    $
    2.38Cash dividends paid (1)
    
    
    2.00
    
    
    
    0.83
    
    
    
    0.68Book value at year-end
    
    
    14.35
    
    
    
    15.01
    
    
    
    12.35Market value at year-end
    
    
    10.67
    
    
    
    23.07
    
    
    
    28.14FINANCIAL RATIOSReturn on average common shareholders equity
    
    
    12.6
    %
    
    
    25.0
    %
    
    
    21.8
    %Return on average assets
    
    
    1.1
    %
    
    
    2.0
    %
    
    
    2.1
    %Efficiency ratio
    
    
    23.8
    %
    
    
    18.4
    %
    
    
    22.9
    %
 (1)
    
    The 2007 amount includes $1.00 per common share special cash dividend declared 6/21/07 and paid 8/1/07.(2)
    
    The 2005 amounts have been restated to reflect a 2-for-1 stock split on 5/18/06.
 1




---



##### 



to
    2




---



##### 



NET INCOME  In thousands of dollars
 EQUITY  In millions of dollars
    3




---



##### 



to (continued)
 COMMERCIAL
REAL ESTATE LENDING BUSINESS
  Originations
 COMMERCIAL
REAL ESTATE LOAN
COMMITMENTS  In millions of dollars
 COMMERCIAL
REAL ESTATE
LOAN ORIGINATIONS  In millions of dollars
 
 4




---



##### 



Lending Strategies
   
    
    Greater involvement of senior management in each and every loan,
    
    Better risk characteristics  such as developer expertise (which is generally higher in
larger projects than smaller projects), better architects, and more qualified general
contractors, and
    
    Less competition from other banks/lenders for these larger loans.
 5




---



##### 



to (continued)
 ASSETS  In millions of dollars
 EFFICIENCY RATIO  Expenses/operating revenues
 lower is better 
    Residential Real Estate Market & Potential Risks
 6




---



##### 



DEPOSITS
    7




---



##### 



to (continued)
  FINANCIAL STRENGTH
  Capital
 Liquidity
  8




---



##### 



Dividend and Share Repurchase Information
 Corus Stock Price
 THANKS TO OUR PARTNERS
   -s- Joseph C. Glickman
    
    -s- Robert J. GlickmanJOSEPH C. GLICKMAN
    
    ROBERT J. GLICKMANChairman of the Board
    
    President and Chief Executive Officer
 9




---



##### 



DECEMBER 31
    
    2007
    
    
    2006(dollars in thousands, except per share data)ASSETSCash and due from banks  noninterest-bearing
    
    $
    76,707
    
    
    $
    121,564Federal funds sold
    
    
    586,500
    
    
    
    319,700Cash and Cash Equivalents
    
    
    663,207
    
    
    
    441,264Securities:Available-for-sale, at fair valueU.S. Government agencies (amortized cost $3,619,875 and $5,182,286)
    
    
    3,618,265
    
    
    
    5,178,270Common stocks (cost $101,981 and $127,316)
    
    
    135,981
    
    
    
    217,042Other securities (amortized cost $30,069 and $34,768)
    
    
    31,253
    
    
    
    35,955Total Securities
    
    
    3,785,499
    
    
    
    5,431,267Loans, net of unearned income
    
    
    4,409,387
    
    
    
    4,141,979Less: Allowance for loan losses
    
    
    70,992
    
    
    
    45,293Loans, net
    
    
    4,338,395
    
    
    
    4,096,686Accrued interest receivable and other assets
    
    
    75,650
    
    
    
    48,236Other real estate owned
    
    
    36,951
    
    
    
    8,439Premises and equipment, net
    
    
    26,875
    
    
    
    27,376Goodwill, net of accumulated amortization of $30,009 in 2006
    
    
    
    
    
    
    4,523Total Assets
    
    $
    8,926,577
    
    
    $
    10,057,791LIABILITIES AND SHAREHOLDERS EQUITYLiabilities:Deposits:Noninterest-bearing
    
    $
    254,477
    
    
    $
    309,267Interest-bearing
    
    
    7,365,205
    
    
    
    8,395,408Total Deposits
    
    
    7,619,682
    
    
    
    8,704,675Long-term debt  subordinated debentures
    
    
    404,647
    
    
    
    384,028Other borrowings
    
    
    54,945
    
    
    
    39,419Accrued interest payable
    
    
    17,257
    
    
    
    27,481Dividends payable
    
    
    13,761
    
    
    
    14,061Other liabilities
    
    
    26,888
    
    
    
    43,600Total Liabilities
    
    
    8,137,180
    
    
    
    9,213,264Shareholders equity:Common stock, $0.05 par value, 130,000,000 shares authorized;
55,011,680 and 56,245,978 shares issued, respectively
    
    
    2,751
    
    
    
    2,812Surplus
    
    
    44,602
    
    
    
    31,783Equity awards outstanding
    
    
    8,215
    
    
    
    9,040Retained earnings
    
    
    713,416
    
    
    
    746,291Accumulated other comprehensive income
    
    
    20,413
    
    
    
    54,601Total Shareholders Equity
    
    
    789,397
    
    
    
    844,527Total Liabilities and Shareholders Equity
    
    $
    8,926,577
    
    
    $
    10,057,791
 See accompanying notes.
 10




---



##### 



of
 YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005(in thousands, except per share data)INTEREST, POINTS AND FEES, AND DIVIDEND INCOMEInterest, points and fees on loans
    
    $
    446,221
    
    
    $
    500,973
    
    
    $
    346,800Federal funds sold
    
    
    15,479
    
    
    
    18,307
    
    
    
    21,936Securities:Interest
    
    
    249,667
    
    
    
    214,638
    
    
    
    71,654Dividends
    
    
    6,891
    
    
    
    7,309
    
    
    
    6,559Total Interest, Points and Fees, and Dividend Income
    
    
    718,258
    
    
    
    741,227
    
    
    
    446,949INTEREST EXPENSEDeposits
    
    
    394,896
    
    
    
    369,791
    
    
    
    178,497Long-term debt  subordinated debentures
    
    
    30,941
    
    
    
    28,547
    
    
    
    17,991Other borrowings
    
    
    4,163
    
    
    
    988
    
    
    
    803Total Interest Expense
    
    
    430,000
    
    
    
    399,326
    
    
    
    197,291Net Interest Income
    
    
    288,258
    
    
    
    341,901
    
    
    
    249,658Provision for credit losses
    
    
    66,000
    
    
    
    7,500
    
    
    
    6,000Net Interest Income After Provision for Credit Losses
    
    
    222,258
    
    
    
    334,401
    
    
    
    243,658NONINTEREST INCOMEService charges on deposit accounts
    
    
    10,114
    
    
    
    10,961
    
    
    
    11,566Securities gains/(losses), net
    
    
    4,673
    
    
    
    6,071
    
    
    
    12,691Other real estate owned
    
    
    1,534
    
    
    
    
    
    
    
    Other income
    
    
    2,050
    
    
    
    2,169
    
    
    
    3,692Total Noninterest Income
    
    
    18,371
    
    
    
    19,201
    
    
    
    27,949NONINTEREST
EXPENSEEmployee compensation and benefits
    
    
    44,508
    
    
    
    45,756
    
    
    
    43,136Net occupancy
    
    
    4,463
    
    
    
    3,961
    
    
    
    3,723Other real estate owned/Protective advances
    
    
    4,186
    
    
    
    149
    
    
    
    Insurance  FDIC
    
    
    3,389
    
    
    
    956
    
    
    
    597Data processing
    
    
    2,373
    
    
    
    2,025
    
    
    
    1,714Depreciation  furniture and equipment
    
    
    2,010
    
    
    
    1,838
    
    
    
    1,444Goodwill impairment
    
    
    4,523
    
    
    
    
    
    
    
    Other expenses
    
    
    11,656
    
    
    
    11,196
    
    
    
    10,708Total Noninterest Expense
    
    
    77,108
    
    
    
    65,881
    
    
    
    61,322Income Before Income Taxes
    
    
    163,521
    
    
    
    287,721
    
    
    
    210,285Income tax expense
    
    
    57,317
    
    
    
    98,277
    
    
    
    73,056Net Income
    
    $
    106,204
    
    
    $
    189,444
    
    
    $
    137,229Net income
per common share: (1)Basic
    
    $
    1.89
    
    
    $
    3.38
    
    
    $
    2.46Diluted
    
    
    1.85
    
    
    
    3.28
    
    
    
    2.38Cash dividends declared per common share (1) (2)
    
    
    2.00
    
    
    
    0.90
    
    
    
    0.70Average
common shares outstanding (1)Basic
    
    
    56,273
    
    
    
    55,968
    
    
    
    55,688Diluted
    
    
    57,265
    
    
    
    57,705
    
    
    
    57,710
 See accompanying notes.
 (1)
    
    All amounts have been restated to reflect a 2-for-1 stock split on 5/18/06.(2)
    
    Includes $1.00 per common share special cash dividend declared on 6/21/07.
 11




---



##### 



of in
 ACCUMULATEDEQUITY
    
    
    
    
    
    
    OTHERCOMMON
    
    
    
    
    
    
    AWARDS
    
    
    RETAINED
    
    
    COMPREHENSIVESTOCK
    
    
    SURPLUS
    
    
    OUTSTANDING
    
    
    EARNINGS
    
    
    INCOME
    
    
    TOTAL(dollars in thousands, except per share data)Balance at December 31, 2004
    
    $
    2,780
    
    
    $
    19,853
    
    
    $
    6,737
    
    
    $
    512,844
    
    
    $
    57,377
    
    
    $
    599,591Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    137,229
    
    
    
    
    
    
    
    137,229Other comprehensive income:Changes in net unrealized gains on securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,864
    )
    
    
    (9,864
    )Reclassification adjustment for net gains realized
in net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,673
    )
    
    
    (12,673
    )Income tax effect
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,157
    
    
    
    9,157Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    123,849Share-based compensation
    
    
    
    
    
    
    
    
    
    
    1,682
    
    
    
    
    
    
    
    
    
    
    
    1,682Shares issued under the stock option
plan, 201,360 common shares
    
    
    10
    
    
    
    3,540
    
    
    
    (649
    )
    
    
    
    
    
    
    
    
    
    
    2,901Commissions held back(1)
    
    
    
    
    
    
    1,745
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,745Shares issued under the Commission Program for
Commercial Loan Officers, 120,432 common shares
    
    
    6
    
    
    
    754
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    760Repurchase and retirement of 63,600 common shares
    
    
    (4
    )
    
    
    (10
    )
    
    
    
    
    
    
    (1,734
    )
    
    
    
    
    
    
    (1,748
    )Cash dividends declared on common stock,
$0.70 per common share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (39,005
    )
    
    
    
    
    
    
    (39,005
    )Balance at December 31, 2005
    
    $
    2,792
    
    
    $
    25,882
    
    
    $
    7,770
    
    
    $
    609,334
    
    
    $
    43,997
    
    
    $
    689,775Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    189,444
    
    
    
    
    
    
    
    189,444Other comprehensive income:Changes in net unrealized gains on securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    24,683
    
    
    
    24,683Reclassification adjustment for net gains realized
in net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,071
    )
    
    
    (6,071
    )Income tax effect
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,331
    )
    
    
    (6,331
    )Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    201,725Adjustment to initially apply FASB Statement
No. 158-net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,677
    )
    
    
    (1,677
    )Share-based compensation
    
    
    
    
    
    
    
    
    
    
    1,905
    
    
    
    
    
    
    
    
    
    
    
    1,905Shares issued under the stock option
plans, 182,260 common shares
    
    
    9
    
    
    
    3,415
    
    
    
    (635
    )
    
    
    
    
    
    
    
    
    
    
    2,789Commissions held back(1)
    
    
    
    
    
    
    1,647
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,647Shares issued under the Commission Program for
Commercial Loan Officers, 314,830 common shares
    
    
    16
    
    
    
    860
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    876Repurchase and retirement of 100,600 common shares
    
    
    (5
    )
    
    
    (21
    )
    
    
    
    
    
    
    (2,061
    )
    
    
    
    
    
    
    (2,087
    )Cash dividends declared on common stock,
$0.90 per common share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (50,426
    )
    
    
    
    
    
    
    (50,426
    )Balance at December 31, 2006
    
    $
    2,812
    
    
    $
    31,783
    
    
    $
    9,040
    
    
    $
    746,291
    
    
    $
    54,601
    
    
    $
    844,527Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    106,204
    
    
    
    
    
    
    
    106,204Other comprehensive income:Changes in net unrealized gains on securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (48,651
    )
    
    
    (48,651
    )Reclassification adjustment for net gains realized
in net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,673
    )
    
    
    (4,673
    )Change in net unrealized pension loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    791
    
    
    
    791Income tax effect
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,345
    
    
    
    18,345Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    72,016Share-based compensation
    
    
    
    
    
    
    
    
    
    
    1,854
    
    
    
    
    
    
    
    
    
    
    
    1,854Shares issued under stock option
plans, 1,009,860 common shares
    
    
    51
    
    
    
    12,222
    
    
    
    (2,660
    )
    
    
    
    
    
    
    
    
    
    
    9,613Stock Option Expirations
    
    
    
    
    
    
    13
    
    
    
    (19
    )
    
    
    
    
    
    
    
    
    
    
    (6
    )Commissions held back(1)
    
    
    
    
    
    
    1,515
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,515Shares issued under the Commission Program for
Commercial Loan Officers, 94,331 common shares
    
    
    5
    
    
    
    67
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    72Repurchase and retirement of 2,338,489 common shares
    
    
    (117
    )
    
    
    (998
    )
    
    
    
    
    
    
    (26,108
    )
    
    
    
    
    
    
    (27,223
    )Cash dividends declared on common stock,
$2.00 per common share(2)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (112,971
    )
    
    
    
    
    
    
    (112,971
    )Balance at December 31, 2007
    
    $
    2,751
    
    
    $
    44,602
    
    
    $
    8,215
    
    
    $
    713,416
    
    
    $
    20,413
    
    
    $
    789,397
 See accompanying notes.
 All amounts have been restated to reflect a 2-for-1 stock split on 5/18/06.
 (1)
    
    Pursuant to the Commission Program for Commercial Loan Officers.(2)
    
    Includes $1.00 per common share special cash dividend declared on 6/21/07.
 12




---



##### 



of
 YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005(in thousands)CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    106,204
    
    
    $
    189,444
    
    
    $
    137,229Adjustments to reconcile net income to net cash (used in)/provided by
operating activities:Provision for credit losses
    
    
    66,000
    
    
    
    7,500
    
    
    
    6,000Goodwill impairment
    
    
    4,523
    
    
    
    
    
    
    
    Depreciation and amortization
    
    
    2,757
    
    
    
    2,571
    
    
    
    2,185Accretion of investment discounts
    
    
    (231,125
    )
    
    
    (191,012
    )
    
    
    (46,185
    )Deferred income tax benefit
    
    
    (8,199
    )
    
    
    (6,191
    )
    
    
    (4,011
    )Securities (gains)/losses, net
    
    
    (4,673
    )
    
    
    (6,071
    )
    
    
    (12,691
    )Commissions held back(1)
    
    
    2,345
    
    
    
    4,036
    
    
    
    3,870Payment of commissions previously held back(1)
    
    
    (1,493
    )
    
    
    (1,543
    )
    
    
    (815
    )Share-based compensation expense
    
    
    1,854
    
    
    
    1,905
    
    
    
    1,682Excess tax benefits from share-based payment arrangements
    
    
    (2,221
    )
    
    
    (1,884
    )
    
    
    (1,928
    )Gain on sale of premises and equipment
    
    
    
    
    
    
    
    
    
    
    (1,420
    )Loss/write-down of other real estate owned
    
    
    885
    
    
    
    261
    
    
    
    Increase in accrued interest receivable and other assets
    
    
    (610
    )
    
    
    (5,306
    )
    
    
    (23,374
    )(Decrease)/Increase in accrued interest payable
    
    
    (10,224
    )
    
    
    (3,191
    )
    
    
    22,667(Decrease)/Increase in other liabilities
    
    
    (6,997
    )
    
    
    (234
    )
    
    
    6,670Net Cash (Used in)/Provided by Operating Activities
    
    
    (80,974
    )
    
    
    (9,715
    )
    
    
    89,879CASH FLOWS FROM INVESTING ACTIVITIES:Proceeds from maturities of available-for-sale securities
    
    
    12,066,815
    
    
    
    7,552,746
    
    
    
    2,712,125Proceeds from sales of available-for-sale securities
    
    
    42,244
    
    
    
    16,128
    
    
    
    460,063Purchases of available-for-sale securities
    
    
    (10,280,213
    )
    
    
    (9,341,079
    )
    
    
    (5,896,630
    )Net (increase)/decrease in loans
    
    
    (340,619
    )
    
    
    371,236
    
    
    
    (1,731,421
    )Recoveries of previously charged-off loans
    
    
    826
    
    
    
    1,193
    
    
    
    1,785Purchases of premises and equipment
    
    
    (2,256
    )
    
    
    (3,508
    )
    
    
    (3,873
    )Proceeds from sale of premises and equipment
    
    
    
    
    
    
    
    
    
    
    2,068Proceeds from sale of other real estate owned
    
    
    3,154
    
    
    
    
    
    
    
    Net Cash Provided by/(Used in) Investing Activities
    
    
    1,489,951
    
    
    
    (1,403,284
    )
    
    
    (4,455,883
    )CASH FLOWS FROM FINANCING ACTIVITIES:(Decrease)/Increase in deposit accounts
    
    
    (1,091,746
    )
    
    
    1,438,846
    
    
    
    3,175,194Net proceeds from issuance of long-term debt  subordinated debentures
    
    
    20,000
    
    
    
    25,000
    
    
    
    100,000(Decrease)/Increase in federal funds purchased
    
    
    
    
    
    
    (41,200
    )
    
    
    41,200Increase in other borrowings, net
    
    
    15,526
    
    
    
    17,826
    
    
    
    14,662Cash proceeds from stock option exercises
    
    
    83
    
    
    
    1,658
    
    
    
    1,734Excess tax benefits from share-based payment arrangements
    
    
    2,221
    
    
    
    1,884
    
    
    
    1,928Repurchases and retirements of common shares
    
    
    (19,848
    )
    
    
    (1,963
    )
    
    
    (1,748
    )Cash dividends paid on common shares
    
    
    (113,270
    )
    
    
    (46,139
    )
    
    
    (37,921
    )Net Cash (Used in)/Provided by Financing Activities
    
    
    (1,187,034
    )
    
    
    1,395,912
    
    
    
    3,295,049Net Increase (Decrease) in Cash and Cash Equivalents
    
    
    221,943
    
    
    
    (17,087
    )
    
    
    (1,070,955
    )Cash and cash equivalents at beginning of year
    
    
    441,264
    
    
    
    458,351
    
    
    
    1,529,306Cash and Cash Equivalents at End of Year
    
    $
    663,207
    
    
    $
    441,264
    
    
    $
    458,351Supplemental disclosures of cash flow information:Cash paid during the period for:Interest
    
    $
    440,224
    
    
    $
    402,517
    
    
    $
    174,624Income taxes
    
    
    78,125
    
    
    
    103,921
    
    
    
    74,955Noncash Investing and Financing Activities:Loan transferred to Other Real Estate Owned
    
    
    31,948
    
    
    
    8,439
    
    
    
    Loan charge-off
    
    
    40,627
    
    
    
    2,640
    
    
    
    927Common stock repurchase  delivery of shares related to option exercise
    
    
    (7,375
    )
    
    
    (124
    )
    
    
    
 See accompanying notes.
 (1)
    
    Pursuant to the Commission Program for Commercial Loan Officers.
 13




---



##### 



to
 NOTE 1
  PRINCIPLES OF CONSOLIDATION
     SEGMENT REPORTING
  CASH AND CASH EQUIVALENTS
  SECURITIES
    14




---



##### 



LOANS
  Nonaccrual Loans
  Impaired Loans
 15




---



##### 



to (continued)
  ALLOWANCE FOR CREDIT LOSSES
      PREMISES AND EQUIPMENT
  16




---



##### 



OTHER REAL ESTATE OWNED
  GOODWILL
  DERIVATIVES
     PENSION ACCOUNTING
  17




---



##### 



to (continued)
  EQUITY COMPENSATION PLANS
   COMMERCIAL LOAN OFFICER COMMISSION PROGRAM
    18




---



##### 



INCOME TAXES
  NOTE 2
 SFAS 157  FAIR VALUE MEASUREMENTS
  19




---



##### 



to (continued)
 SFAS 159  THE FAIR VALUE OPTION FOR FINANCIAL ASSETS AND FINANCIAL LIABILITIES
  SFAS
141 (REVISED 2007)  BUSINESS COMBINATIONS
  NOTE 3
 SECURITIES
  AMORTIZED
    
    
    GROSS UNREALIZED
    
    
    FAIRDECEMBER 31, 2007
    
    COST
    
    
    GAINS
    
    
    LOSSES
    
    
    VALUE(in thousands)U.S. Government agencies
    
    $
    3,619,875
    
    
    $
    213
    
    
    $
    (1,823
    )
    
    $
    3,618,265Common stocks
    
    
    101,981
    
    
    
    39,045
    
    
    
    (5,045
    )
    
    
    135,981Other
    
    
    30,069
    
    
    
    1,184
    
    
    
    
    
    
    
    31,253Total
    
    $
    3,751,925
    
    
    $
    40,442
    
    
    $
    (6,868
    )
    
    $
    3,785,499
 AMORTIZED
    
    
    GROSS UNREALIZED
    
    
    FAIRDECEMBER 31, 2006
    
    COST
    
    
    GAINS
    
    
    LOSSES
    
    
    VALUE(in thousands)U.S. Government agencies
    
    $
    5,182,286
    
    
    $
    2
    
    
    $
    (4,018
    )
    
    $
    5,178,270Common stocks
    
    
    127,316
    
    
    
    89,726
    
    
    
    
    
    
    
    217,042Other
    
    
    34,768
    
    
    
    1,202
    
    
    
    (15
    )
    
    
    35,955Total
    
    $
    5,344,370
    
    
    $
    90,930
    
    
    $
    (4,033
    )
    
    $
    5,431,267
 20




---



##### 



LESS THAN 12 MONTHS
    
    
    MORE THAN 12 MONTHS
    
    
    TOTALUNREALIZED
    
    
    
    
    
    
    UNREALIZED
    
    
    
    
    
    
    UNREALIZEDDECEMBER 31, 2007
    
    FAIR VALUE
    
    
    LOSSES
    
    
    FAIR VALUE
    
    
    LOSSES
    
    
    FAIR VALUE
    
    
    LOSSES(in thousands)U.S. Government agencies
    
    $
    3,045,449
    
    
    $
    1,823
    
    
    $
    
    
    
    $
    
    
    
    $
    3,045,449
    
    
    $
    1,823Common stocks
    
    
    20,041
    
    
    
    5,045
    
    
    
    
    
    
    
    
    
    
    
    20,041
    
    
    
    5,045Total
    
    $
    3,065,490
    
    
    $
    6,868
    
    
    $
    
    
    
    $
    
    
    
    $
    3,065,490
    
    
    $
    6,868
 LESS THAN 12 MONTHS
    
    
    MORE THAN 12 MONTHS
    
    
    TOTALUNREALIZED
    
    
    
    
    
    
    UNREALIZED
    
    
    
    
    
    
    UNREALIZEDDECEMBER 31, 2006
    
    FAIR VALUE
    
    
    LOSSES
    
    
    FAIR VALUE
    
    
    LOSSES
    
    
    FAIR VALUE
    
    
    LOSSES(in thousands)U.S. Government agencies
    
    $
    5,161,329
    
    
    $
    4,018
    
    
    $
    
    
    
    $
    
    
    
    $
    5,161,329
    
    
    $
    4,018Other
    
    
    1,830
    
    
    
    15
    
    
    
    
    
    
    
    
    
    
    
    1,830
    
    
    
    15Total
    
    $
    5,163,159
    
    
    $
    4,033
    
    
    $
    
    
    
    $
    
    
    
    $
    5,163,159
    
    
    $
    4,033
    AMORTIZED
    
    
    FAIRDECEMBER 31, 2007
    
    COST
    
    
    VALUE(in thousands)Due in:One year or less
    
    $
    3,619,875
    
    
    $
    3,618,265Securities not due at a single maturity
    
    
    132,050
    
    
    
    167,234Total
    
    $
    3,751,925
    
    
    $
    3,785,499
  21




---



##### 



to (continued)
  NOTE 4
  DECEMBER 31
    
    2007
    
    
    2006(in millions)Commercial real estate:Condominium:Construction
    
    $
    3,461
    
    
    $
    2,615Conversion
    
    
    584
    
    
    
    1,237Inventory
    
    
    64
    
    
    
    51Total Condominium
    
    
    4,109
    
    
    
    3,903Other commercial real estate:Office
    
    
    104
    
    
    
    100Rental Apartment
    
    
    62
    
    
    
    10Hotel
    
    
    39
    
    
    
    22Other
    
    
    29
    
    
    
    30Loans less than $1 million
    
    
    8
    
    
    
    10Total commercial real estate
    
    
    4,351
    
    
    
    4,075Commercial
    
    
    41
    
    
    
    42Residential real estate and other
    
    
    17
    
    
    
    25Loans, net of unearned income
    
    $
    4,409
    
    
    $
    4,142Mezzanine loans included in total commercial real estate(1)
    
    $
    124
    
    
    $
    196
 (1)
    
    Second mortgage loans subordinate to Corus first mortgage loans.
   22




---



##### 



Commercial Real Estate Loan Portfolio by Collateral Type
 2007
    
    
    2006FUNDED
    
    
    TOTAL
    
    
    
    
    
    
    FUNDED
    
    
    TOTALBALANCE
    
    
    COMMITMENT(1)
    
    
    
    
    
    
    BALANCE
    
    
    COMMITMENT(1)DECEMBER 31
    
    #
    
    
    AMOUNT
    
    
    %
    
    
    AMOUNT
    
    
    %
    
    
    #
    
    
    AMOUNT
    
    
    %
    
    
    AMOUNT
    
    
    %(dollars in millions)Condominium:Construction
    
    
    88
    
    
    $
    3,461
    
    
    
    80
    %
    
    $
    6,445
    
    
    
    85
    %
    
    
    95
    
    
    $
    2,615
    
    
    
    64
    %
    
    $
    6,566
    
    
    
    79
    %Conversion
    
    
    36
    
    
    
    584
    
    
    
    14
    
    
    
    600
    
    
    
    8
    
    
    
    55
    
    
    
    1,237
    
    
    
    31
    
    
    
    1,325
    
    
    
    15Inventory
    
    
    3
    
    
    
    64
    
    
    
    1
    
    
    
    66
    
    
    
    1
    
    
    
    3
    
    
    
    51
    
    
    
    1
    
    
    
    51
    
    
    
    1Condominium Total
    
    
    127
    
    
    
    4,109
    
    
    
    95
    
    
    
    7,111
    
    
    
    94
    
    
    
    153
    
    
    
    3,903
    
    
    
    96
    
    
    
    7,942
    
    
    
    95Office
    
    
    3
    
    
    
    104
    
    
    
    2
    
    
    
    221
    
    
    
    3
    
    
    
    3
    
    
    
    100
    
    
    
    2
    
    
    
    188
    
    
    
    2Hotel
    
    
    2
    
    
    
    39
    
    
    
    1
    
    
    
    124
    
    
    
    2
    
    
    
    2
    
    
    
    22
    
    
    
    1
    
    
    
    128
    
    
    
    2Rental Apartment
    
    
    3
    
    
    
    62
    
    
    
    1
    
    
    
    71
    
    
    
    1
    
    
    
    3
    
    
    
    10
    
    
    
    
    
    
    
    10
    
    
    
    Other
    
    
    5
    
    
    
    29
    
    
    
    1
    
    
    
    29
    
    
    
    
    
    
    
    4
    
    
    
    30
    
    
    
    1
    
    
    
    79
    
    
    
    1Loans less than $1 million
    
    NM
    
    
    
    8
    
    
    
    
    
    
    
    10
    
    
    
    
    
    
    NM
    
    
    
    10
    
    
    
    
    
    
    
    12
    
    
    
    Total
    
    
    140
    
    
    $
    4,351
    
    
    
    100
    %
    
    $
    7,566
    
    
    
    100
    %
    
    
    165
    
    
    $
    4,075
    
    
    
    100
    %
    
    $
    8,359
    
    
    
    100
    %
 NM  Not Meaningful(1)    Includes both funded and unfunded commitments, outstanding commitment letters, and letters of credit.
 Commercial Real Estate Loan Portfolio by Major Metropolitan Area
 2007
    
    
    2006FUNDED
    
    
    TOTAL
    
    
    
    
    
    
    FUNDED
    
    
    TOTALBALANCE
    
    
    COMMITMENT(1)
    
    
    
    
    
    
    BALANCE
    
    
    COMMITMENT(1)DECEMBER 31
    
    #
    
    
    AMOUNT
    
    
    %
    
    
    AMOUNT
    
    
    %
    
    
    #
    
    
    AMOUNT
    
    
    %
    
    
    AMOUNT
    
    
    %(dollars in millions)Florida:Miami/Southeast Florida
    
    
    23
    
    
    $
    1,330
    
    
    
    31
    %
    
    $
    1,949
    
    
    
    26
    %
    
    
    25
    
    
    $
    726
    
    
    
    18
    %
    
    $
    2,008
    
    
    
    24
    %Tampa
    
    
    4
    
    
    
    114
    
    
    
    2
    
    
    
    114
    
    
    
    1
    
    
    
    4
    
    
    
    161
    
    
    
    4
    
    
    
    168
    
    
    
    2Orlando
    
    
    3
    
    
    
    38
    
    
    
    1
    
    
    
    38
    
    
    
    1
    
    
    
    11
    
    
    
    233
    
    
    
    6
    
    
    
    249
    
    
    
    3Other Florida
    
    
    7
    
    
    
    280
    
    
    
    6
    
    
    
    404
    
    
    
    5
    
    
    
    8
    
    
    
    330
    
    
    
    8
    
    
    
    463
    
    
    
    6Florida Total
    
    
    37
    
    
    
    1,762
    
    
    
    40
    
    
    
    2,505
    
    
    
    33
    
    
    
    48
    
    
    
    1,450
    
    
    
    36
    
    
    
    2,888
    
    
    
    35California:Los Angeles
    
    
    15
    
    
    
    368
    
    
    
    8
    
    
    
    919
    
    
    
    12
    
    
    
    14
    
    
    
    173
    
    
    
    4
    
    
    
    708
    
    
    
    9San Diego
    
    
    11
    
    
    
    305
    
    
    
    7
    
    
    
    344
    
    
    
    4
    
    
    
    13
    
    
    
    408
    
    
    
    10
    
    
    
    528
    
    
    
    6Sacramento
    
    
    2
    
    
    
    53
    
    
    
    1
    
    
    
    57
    
    
    
    1
    
    
    
    2
    
    
    
    48
    
    
    
    1
    
    
    
    67
    
    
    
    1San Francisco
    
    
    1
    
    
    
    15
    
    
    
    1
    
    
    
    16
    
    
    
    1
    
    
    
    3
    
    
    
    41
    
    
    
    1
    
    
    
    77
    
    
    
    1California Total
    
    
    29
    
    
    
    741
    
    
    
    17
    
    
    
    1,336
    
    
    
    18
    
    
    
    32
    
    
    
    670
    
    
    
    16
    
    
    
    1,380
    
    
    
    17Atlanta
    
    
    13
    
    
    
    192
    
    
    
    4
    
    
    
    601
    
    
    
    8
    
    
    
    12
    
    
    
    172
    
    
    
    4
    
    
    
    489
    
    
    
    6Las Vegas
    
    
    8
    
    
    
    361
    
    
    
    9
    
    
    
    489
    
    
    
    6
    
    
    
    10
    
    
    
    447
    
    
    
    11
    
    
    
    860
    
    
    
    10New York City
    
    
    7
    
    
    
    280
    
    
    
    6
    
    
    
    473
    
    
    
    6
    
    
    
    16
    
    
    
    328
    
    
    
    8
    
    
    
    733
    
    
    
    9Washington, D.C. (2)
    
    
    10
    
    
    
    219
    
    
    
    5
    
    
    
    389
    
    
    
    5
    
    
    
    16
    
    
    
    448
    
    
    
    11
    
    
    
    698
    
    
    
    8Chicago
    
    
    8
    
    
    
    127
    
    
    
    3
    
    
    
    300
    
    
    
    4
    
    
    
    7
    
    
    
    128
    
    
    
    3
    
    
    
    278
    
    
    
    3Phoenix/Scottsdale
    
    
    8
    
    
    
    132
    
    
    
    3
    
    
    
    185
    
    
    
    3
    
    
    
    8
    
    
    
    113
    
    
    
    3
    
    
    
    245
    
    
    
    3Other (3)
    
    
    20
    
    
    
    529
    
    
    
    13
    
    
    
    1,278
    
    
    
    17
    
    
    
    16
    
    
    
    309
    
    
    
    8
    
    
    
    776
    
    
    
    9Loans less than $1 million
    
    NM
    
    
    
    8
    
    
    
    
    
    
    
    10
    
    
    
    
    
    
    NM
    
    
    
    10
    
    
    
    
    
    
    
    12
    
    
    
    Total
    
    
    140
    
    
    $
    4,351
    
    
    
    100
    %
    
    $
    7,566
    
    
    
    100
    %
    
    
    165
    
    
    $
    4,075
    
    
    
    100
    %
    
    $
    8,359
    
    
    
    100
    %NM  Not Meaningful
 (1)
    
    Includes both funded and unfunded commitments, outstanding
commitment letters, and letters of credit.(2)
    
    Includes northern
Virginia and Maryland loans.(3)
    
    No other metropolitan area exceeds three percent of the total.
 23




---



##### 



to (continued)
 ALLOWANCE FOR CREDIT LOSSES
    2007
    
    
    2006
    
    
    2005(in thousands)Balance at January 1
    
    $
    50,793
    
    
    $
    44,740
    
    
    $
    37,882Provision for credit losses
    
    
    66,000
    
    
    
    7,500
    
    
    
    6,000Charge-offs
    
    
    (40,627
    )
    
    
    (2,640
    )
    
    
    (927
    )Recoveries
    
    
    826
    
    
    
    1,193
    
    
    
    1,785Balance at December 31
    
    $
    76,992
    
    
    $
    50,793
    
    
    $
    44,740
  DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005(in thousands)Allowance for Loan Losses
    
    $
    70,992
    
    
    $
    45,293
    
    
    $
    39,740Liability for Credit Commitment Losses(1)
    
    
    6,000
    
    
    
    5,500
    
    
    
    5,000Total
    
    $
    76,992
    
    
    $
    50,793
    
    
    $
    44,740
 (1)
    
    Included as a component of other liabilities.
 Impaired Loans
   24




---



##### 



NOTE 5
  DECEMBER 31
    
    2007
    
    
    2006(in thousands)Land and improvements
    
    $
    7,907
    
    
    $
    7,877Buildings and improvements
    
    
    30,257
    
    
    
    29,693Furniture and equipment
    
    
    27,410
    
    
    
    25,789Gross Premises and Equipment
    
    
    65,574
    
    
    
    63,359Less accumulated depreciation
    
    
    (38,699
    )
    
    
    (35,983
    )Total Premises and Equipment, Net
    
    $
    26,875
    
    
    $
    27,376
   YEARS ENDING DECEMBER 31(in thousands)2008
    
    $
    7092009
    
    
    7812010
    
    
    7322011
    
    
    7382012
    
    
    7582013 and thereafter
    
    
    2,449Minimum payments
    
    $
    6,167
 NOTE 6
  
 25




---



##### 



to (continued)
 NOTE 7
   RETAIL
    
    
    BROKEREDYEARS ENDING DECEMBER 31
    
    CDS
    
    
    CDS
    
    
    TOTAL(in thousands)2008
    
    $
    5,291,633
    
    
    $
    91,099
    
    
    $
    5,382,7322009
    
    
    17,820
    
    
    
    60,503
    
    
    
    78,3232010
    
    
    4,572
    
    
    
    53,643
    
    
    
    58,2152011
    
    
    1,301
    
    
    
    
    
    
    
    1,3012012
    
    
    3,222
    
    
    
    
    
    
    
    3,2222013 and thereafter
    
    
    7
    
    
    
    
    
    
    
    7Total
    
    $
    5,318,555
    
    
    $
    205,245
    
    
    $
    5,523,800
  NOTE 8
   26




---



##### 



NOTE 9
     BALANCE
    
    
    INTEREST AND FEESOUTSTANDING
    
    
    FOR THE YEARSAT DECEMBER 31
    
    
    ENDED DECEMBER 312007
    
    
    2006
    
    
    2007
    
    
    2006(in thousands)Revolving line of credit
    
    $
    52,907
    
    
    $
    38,301
    
    
    $
    4,131
    
    
    $
    949Other
    
    
    2,038
    
    
    
    1,118
    
    
    
    32
    
    
    
    39Total
    
    $
    54,945
    
    
    $
    39,419
    
    
    $
    4,163
    
    
    $
    988
 27




---



##### 



to (continued)
 NOTE 10
  YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005(in thousands)Current tax expense
    
    $
    65,516
    
    
    $
    104,468
    
    
    $
    77,067Deferred tax benefit
    
    
    (8,199
    )
    
    
    (6,191
    )
    
    
    (4,011
    )Income Tax Provision
    
    $
    57,317
    
    
    $
    98,277
    
    
    $
    73,056
  YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005Statutory federal income tax rate
    
    
    35.0
    %
    
    
    35.0
    %
    
    
    35.0
    %Dividends received deduction
    
    
    (1.0
    )
    
    
    (0.6
    )
    
    
    (0.8
    )Goodwill
    
    
    1.0
    
    
    
    
    
    
    
    Adjustment for tax exposure
    
    
    
    
    
    
    (0.7
    )
    
    
    Other, net
    
    
    0.1
    
    
    
    0.5
    
    
    
    0.5Effective Rate
    
    
    35.1
    %
    
    
    34.2
    %
    
    
    34.7
    %
  DECEMBER 31
    
    2007
    
    
    2006(in thousands)DEFERRED TAX ASSETS:Allowance for loan losses and liability for credit commitment losses
    
    $
    27,517
    
    
    $
    17,834Commissions held back(1)
    
    
    6,772
    
    
    
    6,658Loan application and commitment fees
    
    
    4,150
    
    
    
    5,311Equity compensation
    
    
    2,938
    
    
    
    3,186Other-than-temporary impairment of investments
    
    
    3,977
    
    
    
    1,924Pension
    
    
    1,051
    
    
    
    1,069OREO Write-downs
    
    
    339
    
    
    
    92Other deferred tax assets
    
    
    117
    
    
    
    149Gross Deferred Tax Assets
    
    
    46,861
    
    
    
    36,223DEFERRED TAX LIABILITIES:Gains on nonmonetary stock transactions
    
    
    (12,327
    )
    
    
    (8,840
    )Unrealized securities gains
    
    
    (12,006
    )
    
    
    (30,620
    )Purchase accounting adjustments
    
    
    (821
    )
    
    
    (809
    )Investment discount accretion
    
    
    (15
    )
    
    
    (795
    )Other deferred tax liabilities
    
    
    (420
    )
    
    
    (431
    )Gross Deferred Tax Liabilities
    
    
    (25,589
    )
    
    
    (41,495
    )Net Deferred Tax Asset (Liability)
    
    $
    21,272
    
    
    $
    (5,272
    )
 (1)
    
    Pursuant to the Commission Program for Commercial Loan Officers.
  28




---



##### 



NOTE 11
  YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005(in thousands)Retirement Income Plan and Trust
    
    $
    695
    
    
    $
    892
    
    
    $
    923Employees Savings Plan and Trust
    
    
    337
    
    
    
    208
    
    
    
    194Total
    
    $
    1,032
    
    
    $
    1,100
    
    
    $
    1,117
 PENSION PLAN
   YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005(in thousands  pretax)Net Periodic Benefit CostService cost
    
    $
    1,048
    
    
    $
    1,038
    
    
    $
    1,008Interest cost
    
    
    1,499
    
    
    
    1,419
    
    
    
    1,517Actual gain on plan assets
    
    
    (227
    )
    
    
    (3,186
    )
    
    
    (924
    )Net amortization and deferral
    
    
    (1,625
    )
    
    
    1,621
    
    
    
    (678
    )Total Net Periodic Benefit Cost
    
    
    695
    
    
    
    892
    
    
    
    923Other Comprehensive IncomeNet actuarial gain
    
    
    (791
    )
    
    
    N/A
    
    
    
    N/ATotal Other Comprehensive Income
    
    
    (791
    )
    
    
    N/A
    
    
    
    N/AAmounts Recognized in Net Periodic Benefit Cost
and Other Comprehensive Income, net  (Income)/Expense
    
    $
    (96
    )
    
    $
    892
    
    
    $
    923
 29




---



##### 



to (continued)
 Change
in Projected Benefit Obligation
 2007
    
    
    2006(in thousands)Benefit obligation at January 1
    
    $
    26,701
    
    
    $
    29,206Service cost
    
    
    1,048
    
    
    
    1,038Interest cost
    
    
    1,499
    
    
    
    1,419Actuarial gain
    
    
    (2,416
    )
    
    
    (4,021
    )Benefits paid
    
    
    (982
    )
    
    
    (941
    )Benefit Obligation at December 31
    
    $
    25,850
    
    
    $
    26,701
  Change
in Fair Value of Plan Assets
 2007
    
    
    2006(in thousands)Fair value of plan assets at January 1
    
    $
    23,666
    
    
    $
    21,421Actual gain on plan assets
    
    
    227
    
    
    
    3,186Benefits paid
    
    
    (982
    )
    
    
    (941
    )Fair Value of Plan Assets at December 31
    
    $
    22,911
    
    
    $
    23,666
   Size and Characteristics of the Employee Population
 Actuarial Assumptions
 Expected Long-Term Rate of Return on Plan Assets
 30




---



##### 



Discount Rates
  Benefit Obligation
 DECEMBER 31
    
    2007
    
    
    2006Discount rate
    
    
    6.32
    %
    
    
    5.75
    %Rate of compensation increase
    
    
    5.00
    %
    
    
    5.00
    %
 Net Periodic Benefit Cost
 DECEMBER 31
    
    2007
    
    
    2006Discount rate
    
    
    5.75
    %
    
    
    5.75
    %Expected return on plan assets
    
    
    8.00
    %
    
    
    8.00
    %Rate of compensation increase
    
    
    5.00
    %
    
    
    5.00
    %
 Plan Assets
  PLAN ASSETS AT DECEMBER 31ASSET CATEGORY
    
    2007
    
    
    2006Equity securities
    
    
    99
    %
    
    
    99
    %Other
    
    
    1
    
    
    
    1Total
    
    
    100
    %
    
    
    100
    %
  Contributions
  31




---



##### 



to (continued)
 Expected Future Benefit Payments
  PENSION BENEFITYEARS ENDING DECEMBER 31
    
    PAYMENTS(in thousands)2008
    
    $
    9822009
    
    
    1,1172010
    
    
    1,1892011
    
    
    1,2542012
    
    
    1,3922013  2017
    
    
    8,072Total
    
    $
    14,006
 Measurement Date
  SAVINGS PLAN
  NOTE 12
   32




---



##### 



NOTE 13
   2007
    
    
    2006CARRYING
    
    
    FAIR
    
    
    CARRYING
    
    
    FAIRDECEMBER 31
    
    AMOUNT
    
    
    VALUE
    
    
    AMOUNT
    
    
    VALUE(in thousands)FINANCIAL ASSETSCash and cash equivalents
    
    $
    663,207
    
    
    $
    663,207
    
    
    $
    441,264
    
    
    $
    441,264Securities available-for-sale
    
    
    3,785,499
    
    
    
    3,785,499
    
    
    
    5,431,267
    
    
    
    5,431,267Loans, net
    
    
    4,338,395
    
    
    
    4,339,423
    
    
    
    4,096,686
    
    
    
    4,095,803Accrued interest receivable
    
    
    34,550
    
    
    
    34,550
    
    
    
    43,097
    
    
    
    43,097FINANCIAL LIABILITIESDeposits without a stated maturity
    
    $
    2,095,882
    
    
    $
    2,095,882
    
    
    $
    2,423,699
    
    
    $
    2,423,699Certificates of deposit
    
    
    5,523,800
    
    
    
    5,528,768
    
    
    
    6,280,976
    
    
    
    6,287,271Long-term debt  subordinated debentures
    
    
    404,647
    
    
    
    330,787
    
    
    
    384,028
    
    
    
    387,468Other borrowings
    
    
    54,945
    
    
    
    54,945
    
    
    
    39,419
    
    
    
    39,419Accrued interest payable
    
    
    17,257
    
    
    
    17,257
    
    
    
    27,481
    
    
    
    27,481Other liabilities
    
    
    147
    
    
    
    147
    
    
    
    6,900
    
    
    
    6,900UNRECOGNIZED FINANCIAL LIABILITIESStandby letters of credit
    
    $
    22
    
    
    $
    22
    
    
    $
    24
    
    
    $
    24Commitment letters
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Unfunded loan commitments
    
    
    6,000
    
    
    
    6,000
    
    
    
    5,500
    
    
    
    5,500
 Cash and cash equivalents
 Securities
 Loans
 Accrued interest receivable
 33




---



##### 



(continued)
 Deposits without a stated maturity
 Certificates of deposit
 Long-term debt  subordinated debentures
 Other borrowings
 Accrued interest payable
 Other liabilities
 Unrecognized financial liabilities
  34




---



##### 



DECEMBER 31
    
    2007
    
    
    2006(in thousands)UNFUNDED LOAN COMMITMENTSCommercial real estate:Condominiums:Construction
    
    $
    2,853,432
    
    
    $
    3,885,934Conversion
    
    
    16,206
    
    
    
    86,732Inventory
    
    
    2,000
    
    
    
    Other commercial real estate
    
    
    203,097
    
    
    
    244,070Commercial
    
    
    4,766
    
    
    
    8,438Residential real estate and other
    
    
    3,753
    
    
    
    6,271Total Unfunded Loan Commitments
    
    
    3,083,254
    
    
    
    4,231,445STANDBY
LETTERS OF CREDITCommercial real estate:Condominiums:Construction
    
    
    1,645
    
    
    
    896Conversion
    
    
    
    
    
    
    1,175Inventory
    
    
    
    
    
    
    Other commercial real estate
    
    
    
    
    
    
    202Commercial
    
    
    4,142
    
    
    
    5,565Residential real estate and other
    
    
    
    
    
    
    Total Standby Letters of Credit
    
    
    5,787
    
    
    
    7,838COMMITMENT LETTERS OUTSTANDINGCommercial real estate:Condominiums:Construction
    
    
    139,500
    
    
    
    65,250Conversion
    
    
    
    
    
    
    Inventory
    
    
    
    
    
    
    Other commercial real estate
    
    
    
    
    
    
    Commercial
    
    
    
    
    
    
    Residential real estate and other
    
    
    
    
    
    
    Total Commitment Letters
    
    
    139,500
    
    
    
    65,250TOTAL UNFUNDED COMMITMENTSCommercial real estate:Condominiums:Construction
    
    
    2,994,577
    
    
    
    3,952,080Conversion
    
    
    16,206
    
    
    
    87,907Inventory
    
    
    2,000
    
    
    
    Other commercial real estate
    
    
    203,097
    
    
    
    244,272Commercial
    
    
    8,908
    
    
    
    14,003Residential real estate and other
    
    
    3,753
    
    
    
    6,271Total Unfunded Commitments
    
    $
    3,228,541
    
    
    $
    4,304,533
 35




---



##### 



(continued)
 NOTE 14
  NOTE 15
 REGULATORY CAPITAL AND DIVIDEND RESTRICTIONS
  Concentrations in Commercial Real Estate Lending
 and
   36




---



##### 



Regulatory
Capital
  Corus
and the Banks Capital & Capital Ratios
 Regulatory
Capital and Ratios
 TIER 1
    
    
    TIER 1
    
    
    TOTALLEVERAGE(1)
    
    
    RISK-BASED CAPITAL(2)
    
    
    RISK-BASED CAPITAL(3)AMOUNT
    
    
    RATIO
    
    
    AMOUNT
    
    
    RATIO
    
    
    AMOUNT
    
    
    RATIO(in thousands)Minimum ratios for well capitalized
    
    
    
    
    
    
    5.0
    %
    
    
    
    
    
    
    6.0
    %
    
    
    
    
    
    
    10.0
    %December 31, 2007:Corus
Bankshares, Inc.
    
    $
    1,025,311
    
    
    
    11.4
    %
    
    $
    1,025,311
    
    
    
    14.4
    %
    
    $
    1,254,308
    
    
    
    17.6
    %Corus Bank,
N.A.
    
    $
    940,574
    
    
    
    10.6
    %
    
    $
    940,574
    
    
    
    13.5
    %
    
    $
    1,017,567
    
    
    
    14.6
    %December 31, 2006:Corus
Bankshares, Inc.
    
    $
    1,047,205
    
    
    
    10.6
    %
    
    $
    1,047,205
    
    
    
    13.7
    %
    
    $
    1,249,604
    
    
    
    16.3
    %Corus Bank,
N.A.
    
    $
    970,126
    
    
    
    10.0
    %
    
    $
    970,126
    
    
    
    13.0
    %
    
    $
    1,020,919
    
    
    
    13.7
    %
 (1)
    
    Tier 1 capital, which is shareholders equity plus qualifying trust preferred
securities and unrealized losses from defined benefit pension plan less goodwill, disallowed
portion of deferred income taxes and unrealized gains on available-for-sale securities; computed as
a ratio to average fourth-quarter assets less goodwill, disallowed portion of deferred income taxes
and unrealized gains on available-for-sale securities.(2)
    
    Tier 1 capital; computed as a ratio to risk-adjusted assets.(3)
    
    Total risk-based capital (equal to Tier 1 capital plus trust preferred securities
that do not qualify for Tier 1 capital treatment, qualifying loan loss allowance and SFAS 115
gain); computed as a ratio to risk-adjusted assets.
  37




---



##### 



to (continued)
 EQUITY COMPENSATION PLANS
  Stock Options
   GRANT DATE
    
    4/23/07
    
    
    5/24/06
    
    
    4/8/05Expected volatility
    
    
    26.62
    %
    
    
    27.30
    %
    
    
    26.60
    %Expected dividend yields
    
    
    4.44
    %
    
    
    3.00
    %
    
    
    2.89
    %Expected life
    
    8 years
    
    8 years
    
    10 yearsRisk-free rate
    
    
    4.60
    %
    
    
    4.97
    %
    
    
    4.70
    %Fair value
    
    $
    3.55
    
    
    $
    7.97
    
    
    $
    6.93
     38




---



##### 



WEIGHTEDWEIGHTED
    
    
    AVERAGENUMBER
    
    
    AVERAGE
    
    
    REMAINING
    
    
    AGGREGATEYEAR ENDED DECEMBER 31, 2007
    
    OF SHARES
    
    
    EXERCISE PRICE
    
    
    CONTRACTUAL LIFE
    
    
    INTRINSIC VALUE(1)(in thousands, except exercise price)Beginning options outstanding
    
    
    3,126
    
    
    $
    14.00Grants
    
    
    463
    
    
    
    16.98Exercises
    
    
    (1,010
    )
    
    
    7.38Forfeitures/Expirations
    
    
    (12
    )
    
    
    23.28Ending Options Outstanding
    
    
    2,567
    
    
    $
    17.10
    
    
    6.3 years
    
    
    417Exercisable at December 31
    
    
    1,441
    
    
    $
    14.22
    
    
    4.9 years
    
    
    402
 (1)
    
    Excludes those stock options where the exercise price exceeds the market value of
the underlying stock at 12/31/07.
  YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005(in thousands)Number of options exercised
    
    
    1,010
    
    
    
    182
    
    
    
    201Cash proceeds from exercises
    
    $
    83
    
    
    $
    1,658
    
    
    $
    1,734Noncash proceeds from exercises (market
value of tendered stock)
    
    $
    7,375
    
    
    $
    124
    
    
    $
    Tax benefit Based on Black-Scholes fair value
    
    $
    931
    
    
    $
    222
    
    
    $
    227 Based on intrinsic value in excess
of Black-Scholes fair value
    
    $
    2,156
    
    
    $
    1,007
    
    
    $
    1,167Intrinsic Value
    
    $
    8,820
    
    
    $
    3,512
    
    
    $
    3,984
 .
 Restricted Stock . . . . . . .
 . . . .
  39




---



##### 



to (continued)
 COMMISSION PROGRAM FOR COMMERCIAL LOAN OFFICERS
 .
 . . . . . .
 . . . .
 .
 NOTE 16
  YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005(in thousands, except per share data)Numerator:Net income attributable to common shares
    
    $
    106,204
    
    
    $
    189,444
    
    
    $
    137,229Denominator:Average common shares outstanding  Basic
    
    
    56,273
    
    
    
    55,968
    
    
    
    55,688Effect of dilutive potential common shares
    
    
    992
    
    
    
    1,737
    
    
    
    2,022Average common shares outstanding  Diluted
    
    
    57,265
    
    
    
    57,705
    
    
    
    57,710Net income per share:Basic
    
    $
    1.89
    
    
    $
    3.38
    
    
    $
    2.46Diluted
    
    
    1.85
    
    
    
    3.28
    
    
    
    2.38
 . . . .
 40




---



##### 



NOTE 17
 . .
 . . . . . . . . .
 . . . . . . . .
  TOTAL COMMITMENT
    
    
    FUNDED AMOUNT(1)AS OF DECEMBER 31
    
    
    AS OF DECEMBER 31PARTICIPANT
    
    2007
    
    
    2006
    
    
    2005
    
    
    2007
    
    
    2006
    
    
    2005(in thousands)Edward W.Glickman
    
    $
    
    
    
    $
    3,291
    
    
    $
    10,005
    
    
    
    
    
    
    $
    3,137
    
    
    $
    2,340Robert J.Glickman
    
    
    
    
    
    
    
    
    
    
    17,838
    (2)
    
    
    
    
    
    
    
    
    
    
    
 (1)
    
    The funded amount also represents the largest outstanding balance for each year
presented.(2)
    
    As of December 31, 2005, R.J.Glickman was committed to participate in the loan but
the loan did not close until January 2006, at which point $178,000 in fees were earned.Further,
R.J.Glickman earned an additional $60,000 in fees from a separate loan participation for which the
commitment period expired in 2006.
 FEES AND INTEREST PAID TO PARTICIPANT INPARTICIPANT
    
    2007
    
    
    2006
    
    
    2005(in thousands)Edward W.Glickman
    
    $
    116
    
    
    $
    218
    
    
    $
    72Robert J.Glickman
    
    
    
    
    
    
    238
    
    
    
    
  . . .
  41




---



##### 



to (continued)
 NOTE 18
  Condensed Balance Sheets
 DECEMBER 31
    
    2007
    
    
    2006(in thousands)ASSETSCash
    
    $
    162,850
    
    
    $
    96,296Available-for-sale securities, at fair value
    
    
    152,620
    
    
    
    233,663Investment in subsidiary
    
    
    938,385
    
    
    
    970,378Loans, net of unearned income
    
    
    30,608
    
    
    
    22,760Other assets
    
    
    2,913
    
    
    
    2,889Total Assets
    
    $
    1,287,376
    
    
    $
    1,325,986LIABILITIES AND SHAREHOLDERS EQUITYLong-term debt  subordinated debentures
    
    $
    404,647
    
    
    $
    384,028Other borrowings
    
    
    52,907
    
    
    
    38,301Other liabilities
    
    
    40,425
    
    
    
    59,130Shareholders equity
    
    
    789,397
    
    
    
    844,527Total Liabilities and Shareholders Equity
    
    $
    1,287,376
    
    
    $
    1,325,986
 Condensed Statements of Income
 YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005(in thousands, except per share data)INCOME:Dividends from bank subsidiary .
    
    $
    149,600
    
    
    $
    99,000
    
    
    $
    20,700Interest, points and fees on loans, and dividend income
    
    
    18,928
    
    
    
    11,337
    
    
    
    9,662Securities gains/(losses), net
    
    
    4,657
    
    
    
    6,071
    
    
    
    12,544Other income
    
    
    62
    
    
    
    20
    
    
    
    Total Income
    
    
    173,247
    
    
    
    116,428
    
    
    
    42,906EXPENSE:Interest expense
    
    
    35,071
    
    
    
    29,495
    
    
    
    18,750Other expenses
    
    
    1,996
    
    
    
    2,202
    
    
    
    1,354Total Expense
    
    
    37,067
    
    
    
    31,697
    
    
    
    20,104Income
Before Income Taxes and Equity (Distributed in Excess of) in Undistributed Net Income of
Subsidiary
    
    
    136,180
    
    
    
    84,731
    
    
    
    22,802Income tax benefit
    
    
    (6,320
    )
    
    
    (6,985
    )
    
    
    (907
    )Income Before Equity (Distributed in Excess of) in
Undistributed Net Income of Subsidiary
    
    
    142,500
    
    
    
    91,716
    
    
    
    23,709Equity (distributed in excess of) in undistributed net
income of bank subsidiary
    
    
    (36,296
    )
    
    
    97,728
    
    
    
    113,520Net Income
    
    $
    106,204
    
    
    $
    189,444
    
    
    $
    137,229Net income per share: (1)Basic
    
    $
    1.89
    
    
    $
    3.38
    
    
    $
    2.46Diluted
    
    
    1.85
    
    
    
    3.28
    
    
    
    2.38
 (1)
    
    All amounts have been restated to reflect a 2-for-1 stock split on 5/18/06.
 42




---



##### 



Condensed Statements of Cash Flows
 YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005(in thousands)CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    106,204
    
    
    $
    189,444
    
    
    $
    137,229Adjustments to reconcile net income to net cash provided by
operating activities:Depreciation
    
    
    3
    
    
    
    2
    
    
    
    3Securities (gains)/losses, net
    
    
    (4,657
    )
    
    
    (6,071
    )
    
    
    (12,544
    )Deferred income tax expense (benefit)
    
    
    3,379
    
    
    
    (373
    )
    
    
    (1,060
    )Increase in other assets
    
    
    (27
    )
    
    
    (681
    )
    
    
    (506
    )(Decrease) increase in other liabilities
    
    
    (2,334
    )
    
    
    4,883
    
    
    
    (248
    )Equity distributed in excess of (in undistributed) net
income of bank subsidiary
    
    
    36,296
    
    
    
    (97,728
    )
    
    
    (113,520
    )Net Cash Provided by Operating Activities
    
    
    138,864
    
    
    
    89,476
    
    
    
    9,354CASH FLOWS FROM INVESTING ACTIVITIES:Proceeds from sales of available-for-sale securities
    
    
    38,091
    
    
    
    15,752
    
    
    
    35,241Proceeds from maturities of available-for-sale securities
    
    
    
    
    
    
    15,000
    
    
    
    Purchases of available-for-sale securities
    
    
    (7,492
    )
    
    
    (41,041
    )
    
    
    (4,295
    )Loan participations funded, net
    
    
    (7,848
    )
    
    
    (3,085
    )
    
    
    (8,973
    )Capital infusion to subsidiary bank
    
    
    
    
    
    
    
    
    
    
    (93,000
    )Net Cash Provided by (Used in) Investing Activities
    
    
    22,751
    
    
    
    (13,374
    )
    
    
    (71,027
    )CASH FLOWS FROM FINANCING ACTIVITIES:Net proceeds from issuance of long-term debt 
subordinated debentures
    
    
    20,000
    
    
    
    25,000
    
    
    
    100,000Increase in other borrowings, net
    
    
    14,606
    
    
    
    19,151
    
    
    
    13,650Cash proceeds from stock option exercises
    
    
    83
    
    
    
    1,658
    
    
    
    1,734Equity increase from subsidiary equity compensation plans
    
    
    3,368
    
    
    
    3,552
    
    
    
    3,499Repurchases and retirements of common shares
    
    
    (19,848
    )
    
    
    (1,963
    )
    
    
    (1,748
    )Cash dividends paid on common shares
    
    
    (113,270
    )
    
    
    (46,139
    )
    
    
    (37,921
    )Net Cash (Used in) Provided by Financing Activities
    
    
    (95,061
    )
    
    
    1,259
    
    
    
    79,214Net Increase in Cash and Cash Equivalents
    
    
    66,554
    
    
    
    77,361
    
    
    
    17,541Cash and cash equivalents at beginning of year
    
    
    96,296
    
    
    
    18,935
    
    
    
    1,394Cash and Cash Equivalents at End of Year
    
    $
    162,850
    
    
    $
    96,296
    
    
    $
    18,935
 43




---



##### 



to (continued)
 NOTE 19
  YEAR ENDED DECEMBER 31, 2007
    
    
    YEAR ENDED DECEMBER 31, 2006FOURTH
    
    
    THIRD
    
    
    SECOND
    
    
    FIRST
    
    
    FOURTH
    
    
    THIRD
    
    
    SECOND
    
    
    FIRSTQUARTER
    
    
    QUARTER
    
    
    QUARTER
    
    
    QUARTER
    
    
    QUARTER
    
    
    QUARTER
    
    
    QUARTER
    
    
    QUARTER(in thousands, except per share data)Interest, points and fees on loans,
and dividend income
    
    $
    164,663
    
    
    $
    179,416
    
    
    $
    187,219
    
    
    $
    186,960
    
    
    $
    194,289
    
    
    $
    198,354
    
    
    $
    181,767
    
    
    $
    166,817Interest expense
    
    
    102,872
    
    
    
    106,228
    
    
    
    109,219
    
    
    
    111,681
    
    
    
    113,179
    
    
    
    107,304
    
    
    
    95,841
    
    
    
    83,002Net Interest Income
    
    
    61,791
    
    
    
    73,188
    
    
    
    78,000
    
    
    
    75,279
    
    
    
    81,110
    
    
    
    91,050
    
    
    
    85,926
    
    
    
    83,815Provision for credit losses
    
    
    (33,500
    )
    
    
    (15,000
    )
    
    
    (12,000
    )
    
    
    (5,500
    )
    
    
    (4,500
    )
    
    
    
    
    
    
    
    
    
    
    (3,000
    )Net Interest Income After
Provision for Credit Losses
    
    
    28,291
    
    
    
    58,188
    
    
    
    66,000
    
    
    
    69,779
    
    
    
    76,610
    
    
    
    91,050
    
    
    
    85,926
    
    
    
    80,815Noninterest income, excluding
securities gains/(losses), net
    
    
    3,609
    
    
    
    3,633
    
    
    
    3,059
    
    
    
    3,397
    
    
    
    3,360
    
    
    
    3,259
    
    
    
    3,171
    
    
    
    3,340Securities gains/(losses), net
    
    
    (4,082
    )
    
    
    10,983
    
    
    
    13,025
    
    
    
    (15,253
    )
    
    
    6,606
    
    
    
    8
    
    
    
    
    
    
    
    (543
    )Noninterest expense
    
    
    23,657
    
    
    
    18,671
    
    
    
    16,970
    
    
    
    17,810
    
    
    
    16,230
    
    
    
    15,996
    
    
    
    16,460
    
    
    
    17,195Income Before Income Taxes
    
    
    4,161
    
    
    
    54,133
    
    
    
    65,114
    
    
    
    40,113
    
    
    
    70,346
    
    
    
    78,321
    
    
    
    72,637
    
    
    
    66,417Income tax expense
    
    
    2,237
    
    
    
    18,649
    
    
    
    22,707
    
    
    
    13,724
    
    
    
    23,169
    
    
    
    27,204
    
    
    
    24,876
    
    
    
    23,028Net Income
    
    $
    1,924
    
    
    $
    35,484
    
    
    $
    42,407
    
    
    $
    26,389
    
    
    $
    47,177
    
    
    $
    51,117
    
    
    $
    47,761
    
    
    $
    43,389Net income per share: (1)Basic
    
    $
    0.03
    
    
    $
    0.63
    
    
    $
    0.75
    
    
    $
    0.47
    
    
    $
    0.84
    
    
    $
    0.91
    
    
    $
    0.85
    
    
    $
    0.78Diluted
    
    
    0.03
    
    
    
    0.61
    
    
    
    0.74
    
    
    
    0.46
    
    
    
    0.82
    
    
    
    0.88
    
    
    
    0.82
    
    
    
    0.75
 (1)
    
    All amounts have been restated to reflect a 2-for-1 stock split on 5/18/06.
 Common Stock Market Information and Dividend Highlights
 YEAR ENDED DECEMBER 31, 2007
    
    
    YEAR ENDED DECEMBER 31, 2006FOURTH
    
    
    THIRD
    
    
    SECOND
    
    
    FIRST
    
    
    FOURTH
    
    
    THIRD
    
    
    SECOND
    
    
    FIRSTQUARTER
    
    
    QUARTER
    
    
    QUARTER
    
    
    QUARTER
    
    
    QUARTER
    
    
    QUARTER
    
    
    QUARTER
    
    
    QUARTERStock price rangeHigh
    
    $
    14.32
    
    
    $
    18.00
    
    
    $
    20.00
    
    
    $
    24.72
    
    
    $
    25.29
    
    
    $
    27.00
    
    
    $
    33.74
    
    
    $
    32.77Low
    
    
    8.74
    
    
    
    12.42
    
    
    
    15.85
    
    
    
    15.62
    
    
    
    19.75
    
    
    
    20.04
    
    
    
    25.00
    
    
    
    27.49Close
    
    
    10.67
    
    
    
    13.02
    
    
    
    17.26
    
    
    
    17.06
    
    
    
    23.07
    
    
    
    22.36
    
    
    
    26.18
    
    
    
    29.72Cash dividends declared (1)
    
    
    0.250
    
    
    
    0.250
    
    
    
    1.250
    
    
    
    0.250
    
    
    
    0.250
    
    
    
    0.250
    
    
    
    0.200
    
    
    
    0.200
 All amounts have been restated to reflect a 2-for-1 stock split on 5/18/06.
 (1)
    
    The second quarter of the year ended December 31, 2007, includes a $1.00 per common
share special cash dividend declared 6/21/07.
  44




---



##### 



of
  . . .
 . . . .
 . .
 Internal Control  Integrated Framework
 
 
 45




---



##### 



of
  Internal Control  Integrated Framework . . .
 . . .
 .
 .
 .
 .
 
 
 46




---



##### 



on over
 . . . .
 
    
    pertain to the maintenance of records that in reasonable detail accurately and fairly
reflect the transactions and dispositions of the assets of the Company;
    
    provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles;
    
    provide reasonable assurance that receipts and expenditures of the Company are being
made only in accordance with authorizations of management and directors of the Company;
    
    provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Companys assets that could have a material effect
on the consolidated financial statements.
 .
 . Internal Control  Integrated Framework . .
   -s- Robert J. Glickman
    
    -s- Tim H. TaylorROBERT J.GLICKMANPresident and Chief Executive Officer
    
    TIM H.TAYLORExecutive Vice President and Chief Financial Officer
 
 MICHAEL E . DULBERG  Senior Vice President and Chief Accounting Officer
  47




---



##### 



and of and of
  . . . . .
  . .
 . . . .
 . . . . . .
 . .
 . . . .
 48




---



##### 



. . .
 NET INTEREST INCOME AND NET INTEREST MARGIN
 . . . .
  
    
    While average earning assets were essentially flat between the two years, average
loan balances declined, thus shifting the balance of earning assets out of Corus highest
yielding asset (loans) into a lower yielding asset (investments), and depressing both net
interest income and the NIM.
    
    A significant increase in nonaccrual loans, which increased from an average of $12.7
million in 2006 to $216.7 million in 2007.While Corus did record some interest income on
these loans in 2007, it was $16.5 million lower than it otherwise would have been had the
loans been accruing normally.
    
    Loan points and fees declined compared to 2006 by over $17 million to $78.6 million.
The decline is primarily attributable to lower originations in 2007 compared to 2006.
 .
 . . .
 .
 . .
 49




---



##### 



and of and of (continued)
 . . . .
 . .
 Nonaccrual Loans . . .
 . . . .
 LOAN YIELDS
 . . . .
 .
 50




---



##### 



Average Balance Sheets and Net Interest Margin
 2007
    
    
    2006
    
    
    2005INTEREST,
    
    
    
    
    
    
    
    
    
    
    INTEREST,
    
    
    
    
    
    
    
    
    
    
    INTEREST,AVERAGE
    
    
    POINTS & FEES,
    
    
    YIELD/
    
    
    AVERAGE
    
    
    POINTS & FEES,
    
    
    YIELD/
    
    
    AVERAGE
    
    
    POINTS & FEES,
    
    
    YIELD/YEARS ENDED DECEMBER 31
    
    BALANCE
    
    
    AND DIVIDENDS
    
    
    COST
    
    
    BALANCE
    
    
    AND DIVIDENDS
    
    
    COST
    
    
    BALANCE
    
    
    AND DIVIDENDS
    
    
    COST(in thousands)ASSETSEarning Assets:Federal funds sold
    
    $
    304,201
    
    
    $
    15,479
    
    
    
    5.09
    %
    
    $
    365,646
    
    
    $
    18,307
    
    
    
    5.01
    %
    
    $
    761,813
    
    
    $
    21,935
    
    
    
    2.88
    %Securities other than
common stocks (1)
    
    
    4,829,890
    
    
    
    249,700
    
    
    
    5.17
    %
    
    
    4,358,386
    
    
    
    214,675
    
    
    
    4.93
    %
    
    
    2,008,382
    
    
    
    71,690
    
    
    
    3.57
    %Common stocks (2)
    
    
    187,086
    
    
    
    9,488
    
    
    
    5.07
    %
    
    
    195,686
    
    
    
    10,064
    
    
    
    5.14
    %
    
    
    200,356
    
    
    
    9,031
    
    
    
    4.51
    %Nonaccrual loans
    
    
    216,699
    
    
    
    4,859
    
    
    
    2.24
    %
    
    
    12,654
    
    
    
    
    
    
    
    0.00
    %
    
    
    
    
    
    
    
    
    
    
    Loans, net of unearned income (3)
    
    
    3,849,596
    
    
    
    442,066
    
    
    
    11.48
    %
    
    
    4,444,145
    
    
    
    501,017
    
    
    
    11.27
    %
    
    
    3,551,877
    
    
    
    346,873
    
    
    
    9.77
    %Total Earning Assets
    
    
    9,387,472
    
    
    
    721,592
    
    
    
    7.69
    %
    
    
    9,376,517
    
    
    
    744,063
    
    
    
    7.94
    %
    
    
    6,522,428
    
    
    
    449,529
    
    
    
    6.89
    %Noninterest-earning assets:Cash and due from banks 
noninterest-bearing
    
    
    74,780
    
    
    
    
    
    
    
    
    
    
    
    92,625
    
    
    
    
    
    
    
    
    
    
    
    103,222Allowance for loan losses
    
    
    (50,520
    )
    
    
    
    
    
    
    
    
    
    
    (41,812
    )
    
    
    
    
    
    
    
    
    
    
    (34,226
    )Premises and equipment, net
    
    
    27,022
    
    
    
    
    
    
    
    
    
    
    
    27,130
    
    
    
    
    
    
    
    
    
    
    
    25,927Other real estate owned
    
    
    24,405
    
    
    
    
    
    
    
    
    
    
    
    116
    
    
    
    
    
    
    
    
    
    
    
    Other assets, including goodwill
    
    
    41,889
    
    
    
    
    
    
    
    
    
    
    
    42,734
    
    
    
    
    
    
    
    
    
    
    
    30,886Total Assets
    
    $
    9,505,048
    
    
    
    
    
    
    
    
    
    
    $
    9,497,310
    
    
    
    
    
    
    
    
    
    
    $
    6,648,237LIABILITIES AND SHAREHOLDERS EQUITYDeposits  interest-bearing:Retail certificates of deposit
    
    $
    5,648,976
    
    
    $
    299,130
    
    
    
    5.30
    %
    
    $
    5,380,702
    
    
    $
    260,215
    
    
    
    4.84
    %
    
    $
    2,869,613
    
    
    $
    104,732
    
    
    
    3.65
    %Money market deposits
    
    
    1,588,554
    
    
    
    75,180
    
    
    
    4.73
    %
    
    
    1,796,627
    
    
    
    83,582
    
    
    
    4.65
    %
    
    
    1,562,308
    
    
    
    50,899
    
    
    
    3.26
    %NOW deposits
    
    
    263,239
    
    
    
    6,313
    
    
    
    2.40
    %
    
    
    302,259
    
    
    
    7,537
    
    
    
    2.49
    %
    
    
    307,605
    
    
    
    5,190
    
    
    
    1.69
    %Brokered certificates of deposit
    
    
    234,592
    
    
    
    13,646
    
    
    
    5.82
    %
    
    
    318,317
    
    
    
    17,758
    
    
    
    5.58
    %
    
    
    430,983
    
    
    
    16,893
    
    
    
    3.92
    %Savings deposits
    
    
    126,668
    
    
    
    627
    
    
    
    0.49
    %
    
    
    141,467
    
    
    
    699
    
    
    
    0.49
    %
    
    
    158,111
    
    
    
    783
    
    
    
    0.50
    %Total Interest-Bearing Deposits
    
    
    7,862,029
    
    
    
    394,896
    
    
    
    5.02
    %
    
    
    7,939,372
    
    
    
    369,791
    
    
    
    4.66
    %
    
    
    5,328,620
    
    
    
    178,497
    
    
    
    3.35
    %Long-term debt 
subordinated debentures
    
    
    394,648
    
    
    
    30,941
    
    
    
    7.84
    %
    
    
    377,885
    
    
    
    28,547
    
    
    
    7.55
    %
    
    
    297,879
    
    
    
    17,991
    
    
    
    6.04
    %Other borrowings (4)
    
    
    56,572
    
    
    
    4,163
    
    
    
    7.36
    %
    
    
    11,991
    
    
    
    988
    
    
    
    8.24
    %
    
    
    12,785
    
    
    
    803
    
    
    
    6.27
    %Total Interest-Bearing Liabilities
    
    
    8,313,249
    
    
    
    430,000
    
    
    
    5.17
    %
    
    
    8,329,248
    
    
    
    399,326
    
    
    
    4.79
    %
    
    
    5,639,284
    
    
    
    197,291
    
    
    
    3.50
    %Noninterest-bearing liabilities and
shareholders equity:Noninterest-bearing deposits
    
    
    276,823
    
    
    
    
    
    
    
    
    
    
    
    305,613
    
    
    
    
    
    
    
    
    
    
    
    296,648Other liabilities
    
    
    74,851
    
    
    
    
    
    
    
    
    
    
    
    103,236
    
    
    
    
    
    
    
    
    
    
    
    81,904Shareholders equity
    
    
    840,125
    
    
    
    
    
    
    
    
    
    
    
    759,213
    
    
    
    
    
    
    
    
    
    
    
    630,401Total Liabilities and
Shareholders Equity
    
    $
    9,505,048
    
    
    
    
    
    
    
    
    
    
    $
    9,497,310
    
    
    
    
    
    
    
    
    
    
    $
    6,648,237Earning assets
    
    $
    9,387,472
    
    
    $
    721,592
    
    
    
    7.69
    %
    
    $
    9,376,517
    
    
    $
    744,063
    
    
    
    7.94
    %
    
    $
    6,522,428
    
    
    $
    449,529
    
    
    
    6.89
    %Interest-bearing liabilities
    
    
    8,313,249
    
    
    
    430,000
    
    
    
    5.17
    %
    
    
    8,329,248
    
    
    
    399,326
    
    
    
    4.79
    %
    
    
    5,639,284
    
    
    
    197,291
    
    
    
    3.50
    %Net Interest Spread
    
    
    
    
    
    $
    291,592
    
    
    
    2.52
    %
    
    
    
    
    
    $
    344,737
    
    
    
    3.15
    %
    
    
    
    
    
    $
    252,238
    
    
    
    3.39
    %Net Interest Margin
    
    
    
    
    
    
    
    
    
    
    3.11
    %
    
    
    
    
    
    
    
    
    
    
    3.68
    %
    
    
    
    
    
    
    
    
    
    
    3.87
    %
 Tax equivalent adjustments are based on a federal income tax rate of 35%.
 (1)
    
    Interest income on securities includes a tax equivalent adjustment that was
immaterial for 2007, 2006, and 2005, respectively.(2)
    
    Dividends on the common stock portfolio include a tax equivalent adjustment of $2.6
million, $2.8 million, and $2.5 million for 2007, 2006, and 2005, respectively.(3)
    
    Interest income on tax-advantaged loans includes a tax equivalent adjustment that
was immaterial for 2007, 2006, and 2005, respectively.(4)
    
    Other borrowings include
federal funds purchased.
 51




---



##### 



and of and of (continued)
  Net Interest Income Volume/Rate Analysis
 2007 COMPARED TO 2006
    
    
    2006 COMPARED TO 2005CHANGE DUE TO(1)
    
    
    
    
    
    
    CHANGE DUE TO(1)YEARS ENDED DECEMBER 31
    
    VOLUME
    
    
    RATE
    
    
    TOTAL
    
    
    VOLUME
    
    
    RATE
    
    
    TOTAL(dollars in thousands)Federal funds sold
    
    $
    (3,101
    )
    
    $
    273
    
    
    $
    (2,828
    )
    
    $
    (15,621
    )
    
    $
    11,993
    
    
    $
    (3,628
    )Investment securities (2)
    
    
    23,379
    
    
    
    11,070
    
    
    
    34,449
    
    
    
    100,727
    
    
    
    43,291
    
    
    
    144,018Nonaccrual loans
    
    
    2,288
    
    
    
    2,571
    
    
    
    4,859
    
    
    
    
    
    
    
    
    
    
    
    Loans, net of unearned income
    
    
    (67,651
    )
    
    
    8,700
    
    
    
    (58,951
    )
    
    
    93,864
    
    
    
    60,280
    
    
    
    154,144Total (Decrease) Increase in Interest Income
    
    
    (45,085
    )
    
    
    22,614
    
    
    
    (22,471
    )
    
    
    178,970
    
    
    
    115,564
    
    
    
    294,534Retail certificates of deposit
    
    
    13,590
    
    
    
    25,325
    
    
    
    38,915
    
    
    
    106,543
    
    
    
    48,939
    
    
    
    155,482Money market deposits
    
    
    (9,764
    )
    
    
    1,362
    
    
    
    (8,402
    )
    
    
    9,267
    
    
    
    23,416
    
    
    
    32,683NOW deposits
    
    
    (954
    )
    
    
    (270
    )
    
    
    (1,224
    )
    
    
    (112
    )
    
    
    2,459
    
    
    
    2,347Brokered certificates of deposit
    
    
    (4,770
    )
    
    
    658
    
    
    
    (4,112
    )
    
    
    (5,351
    )
    
    
    6,216
    
    
    
    865Savings deposits
    
    
    (73
    )
    
    
    1
    
    
    
    (72
    )
    
    
    (82
    )
    
    
    (2
    )
    
    
    (84
    )Borrowings
    
    
    4,710
    
    
    
    859
    
    
    
    5,569
    
    
    
    5,396
    
    
    
    5,346
    
    
    
    10,742Total Increase in Interest Expense
    
    
    2,739
    
    
    
    27,935
    
    
    
    30,674
    
    
    
    115,661
    
    
    
    86,374
    
    
    
    202,035(Decrease) Increase in Net Interest Income
    
    $
    (47,824
    )
    
    $
    (5,321
    )
    
    $
    (53,145
    )
    
    $
    63,309
    
    
    $
    29,190
    
    
    $
    92,499
 Tax equivalent adjustments are based on a federal tax rate of 35%.
 (1)
    
    The net changes attributable to the combined impact of volume and rate have been
allocated equally to both volume and rate.(2)
    
    Includes dividends on common stocks adjusted for the 70% dividend received deduction
and interest income on tax-advantaged securities.
 NONINTEREST INCOME
 . . .
 Noninterest Income
 2007/2006
    
    
    2006/2005YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005
    
    
    CHANGE
    
    
    CHANGE(dollars in thousands)Service charges on deposit accounts
    
    $
    10,114
    
    
    $
    10,961
    
    
    $
    11,566
    
    
    
    (7.7
    )%
    
    
    (5.2
    )%Securities gains/(losses), net
    
    
    4,673
    
    
    
    6,071
    
    
    
    12,691
    
    
    
    (23.0
    )%
    
    
    (52.2
    )%Other real estate owned
    
    
    1,534
    
    
    
    
    
    
    
    
    
    
    NA
    
    
    NAOther
    
    
    2,050
    
    
    
    2,169
    
    
    
    3,692
    
    
    
    (5.5
    )%
    
    
    (41.3
    )%Total Noninterest Income
    
    $
    18,371
    
    
    $
    19,201
    
    
    $
    27,949
    
    
    
    (4.3
    )%
    
    
    (31.3
    )%Noninterest Income, Excluding Securities
Gains/(Losses), net
    
    $
    13,698
    
    
    $
    13,130
    
    
    $
    15,258
    
    
    
    4.3
    %
    
    
    (13.9
    )%
 NA
 Not applicable
 52




---



##### 



Service Charges on Deposit Accounts . .
 Securities Gains/(Losses), Net
 Securities Gains/(Losses), net
 YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005(dollars in thousands)Gains on common stocks (cash transactions)
    
    $
    18,093
    
    
    $
    
    
    
    $
    12,599Gains on common stocks (stock-for-stock)
    
    
    8,761
    
    
    
    7,413
    
    
    
    810Charge for other than temporary impairment
    
    
    (22,367
    )
    
    
    (1,453
    )
    
    
    (880
    )Other
    
    
    186
    
    
    
    111
    
    
    
    162Total Securities Gains/(Losses), net
    
    $
    4,673
    
    
    $
    6,071
    
    
    $
    12,691
 Gains on Common Stocks . .
 . . .
 . . . . .
 Charge for Other-Than-Temporary Impairment . . . . .
 .
 53




---



##### 



and of and of (continued)
 . . . .
 . . .
 Other Real Estate Owned . .
 Other Income . . . .
 NONINTEREST EXPENSE
 . . .
 Noninterest Expense
 2007/2006
    
    
    2006/2005YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005
    
    
    CHANGE
    
    
    CHANGE(in thousands)Employee compensation and benefits
    
    $
    44,508
    
    
    $
    45,756
    
    
    $
    43,136
    
    
    
    (2.7
    )%
    
    
    6.1
    %Net occupancy
    
    
    4,463
    
    
    
    3,961
    
    
    
    3,723
    
    
    
    12.7
    %
    
    
    6.4
    %Other real estate owned/Protective advances
    
    
    4,186
    
    
    
    149
    
    
    
    
    
    
    NM
    
    
    NAInsurance  FDIC
    
    
    3,389
    
    
    
    956
    
    
    
    597
    
    
    
    254.5
    %
    
    
    60.1
    %Data processing
    
    
    2,373
    
    
    
    2,025
    
    
    
    1,714
    
    
    
    17.2
    %
    
    
    18.1
    %Depreciation  furniture and equipment
    
    
    2,010
    
    
    
    1,838
    
    
    
    1,444
    
    
    
    9.4
    %
    
    
    27.3
    %Goodwill impairment
    
    
    4,523
    
    
    
    
    
    
    
    
    
    
    NA
    
    
    NAOther expenses
    
    
    11,656
    
    
    
    11,196
    
    
    
    10,708
    
    
    
    4.1
    %
    
    
    4.6
    %Total Noninterest Expense
    
    $
    77,108
    
    
    $
    65,881
    
    
    $
    61,322
    
    
    
    17.0
    %
    
    
    7.4
    %Efficiency ratio
    
    
    23.8
    %
    
    
    18.4
    %
    
    
    22.9
    %
 NM
Not meaningful
 NA  Not applicable
 54




---



##### 



Employee Compensation and Benefits .
 Commercial Loan Officer Commissions
 YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005(dollars in thousands)Salaries(1)
    
    $
    2,407
    
    
    $
    2,667
    
    
    $
    2,449Commissions paid in cash
    
    
    6,814
    
    
    
    7,027
    
    
    
    6,855Commissions held back
    
    
    2,055
    
    
    
    3,375
    
    
    
    3,870S&P 500 holdbacks  mark-to-market
    
    
    213
    
    
    
    612
    
    
    
    189Treasury holdbacks  mark-to-market
    
    
    77
    
    
    
    49
    
    
    
    19Total CLO Compensation Expense
    
    $
    11,566
    
    
    $
    13,730
    
    
    $
    13,382
 (1)
    
    A portion of salaries are treated as an advance against commissions.
 . . .
 . . . . .
 .
 . . . . .
 55




---



##### 



and of and of (continued)
 . . . . . . . . . . .
 . . . . . . . .
  DECEMBER 31
    
    2007
    
    
    2006(dollars in thousands)Corus Stock
    
    $
    8,512
    
    
    $
    17,274S&P 500
    
    
    4,171
    
    
    
    4,782Treasury
    
    
    2,792
    
    
    
    2,843Total Value of Holdbacks
    
    $
    15,475
    
    
    $
    24,899
 .
 . . .
 .
 . .
 56




---



##### 



Net Occupancy .
 Other Real Estate Owned/Protective Advances . . . .
 Insurance  FDIC . . . . .
 Data Processing . .
 Goodwill Impairment . . . . .
 . . .
 Other Expenses . .
 Efficiency Ratio . . . .
 57




---



##### 



and of and of (continued)
 INCOME TAXES
 . .
 . . .
 . .
 .
 INFLATION
 . . . . .
  COMMON STOCK PORTFOLIO
 . . . . .
 58




---



##### 



2007
    
    
    2006SHARES
    
    
    MARKET
    
    
    PERCENTAGE
    
    
    SHARES
    
    
    MARKET
    
    
    PERCENTAGECORPORATION
    
    HELD
    
    
    VALUE
    
    
    OF PORTFOLIO
    
    
    HELD
    
    
    VALUE
    
    
    OF PORTFOLIO(dollars in thousands)Amcore Financial Inc.
    
    
    69,100
    
    
    $
    1,569
    
    
    
    1.1
    %
    
    
    69,100
    
    
    $
    2,257
    
    
    
    1.0
    %Associated Banc Corp.
    
    
    121,179
    
    
    
    3,283
    
    
    
    2.4
    
    
    
    121,179
    
    
    
    4,227
    
    
    
    1.9Bank of America Corp.
    
    
    670,594
    
    
    
    27,669
    
    
    
    20.3
    
    
    
    670,594
    
    
    
    35,803
    
    
    
    16.5Bank of NY Mellon Corp.
    
    
    94,340
    
    
    
    4,600
    
    
    
    3.4
    
    
    
    100,000
    
    
    
    3,937
    
    
    
    1.8Citigroup Inc.
    
    
    225,000
    
    
    
    6,624
    
    
    
    4.9
    
    
    
    225,000
    
    
    
    12,533
    
    
    
    5.8Comerica Inc.
    
    
    264,300
    
    
    
    11,505
    
    
    
    8.5
    
    
    
    264,300
    
    
    
    15,509
    
    
    
    7.1Compass Bancshares Inc.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    108,750
    
    
    
    6,487
    
    
    
    3.0Discover Financial Services
    
    
    41,000
    
    
    
    618
    
    
    
    0.5
    
    
    
    
    
    
    
    
    
    
    
    Fremont General Corp.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,574,600
    
    
    
    25,524
    
    
    
    11.8JP Morgan Chase & Co.
    
    
    500,864
    
    
    
    21,863
    
    
    
    16.1
    
    
    
    500,864
    
    
    
    24,192
    
    
    
    11.1MAF Bancorp Inc.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    204,850
    
    
    
    9,155
    
    
    
    4.2Merrill Lynch & Co. Inc.
    
    
    132,000
    
    
    
    7,086
    
    
    
    5.2
    
    
    
    132,000
    
    
    
    12,289
    
    
    
    5.7Morgan Stanley
    
    
    82,000
    
    
    
    4,355
    
    
    
    3.2
    
    
    
    82,000
    
    
    
    6,677
    
    
    
    3.1National City Corp.
    
    
    482,970
    
    
    
    7,950
    
    
    
    5.8
    
    
    
    74,520
    
    
    
    2,724
    
    
    
    1.3Regions Financial Corp.
    
    
    515,154
    
    
    
    12,183
    
    
    
    9.0
    
    
    
    515,154
    
    
    
    19,267
    
    
    
    8.9Sun Trust Banks Inc.
    
    
    48,000
    
    
    
    2,999
    
    
    
    2.2
    
    
    
    48,000
    
    
    
    4,054
    
    
    
    1.9US Bancorp
    
    
    268,870
    
    
    
    8,534
    
    
    
    6.3
    
    
    
    268,870
    
    
    
    9,730
    
    
    
    4.5Wachovia Corp.
    
    
    398,191
    
    
    
    15,143
    
    
    
    11.1
    
    
    
    398,191
    
    
    
    22,677
    
    
    
    10.4Total
    
    
    
    
    
    $
    135,981
    
    
    
    100.0
    %
    
    
    
    
    
    $
    217,042
    
    
    
    100.0
    %
  SECURITIES OTHER THAN COMMON STOCKS
    59




---



##### 



and of and of (continued)
 LOAN PORTFOLIO
  DECEMBER 31
    
    2007
    
    
    2006(in millions)Commercial real estate:Condominium:Construction
    
    $
    3,461
    
    
    $
    2,615Conversion
    
    
    584
    
    
    
    1,237Inventory
    
    
    64
    
    
    
    51Total condominium
    
    
    4,109
    
    
    
    3,903Other commercial real estate:Office
    
    
    104
    
    
    
    100Rental apartment
    
    
    62
    
    
    
    10Hotel
    
    
    39
    
    
    
    22Other
    
    
    29
    
    
    
    30Loans less than $1 million
    
    
    8
    
    
    
    10Total commercial real estate
    
    
    4,351
    
    
    
    4,075Commercial
    
    
    41
    
    
    
    42Residential real estate and other
    
    
    17
    
    
    
    25Loans, net of unearned income
    
    $
    4,409
    
    
    $
    4,142Mezzanine loans included in total commercial real estate(1)
    
    $
    124
    
    
    $
    196
 (1)
    
    Second mortgage loans subordinate to Corus first mortgage loans.
  Overview
   60




---



##### 



Originations
   Loan Balances
  61




---



##### 



and of and of (continued)
 Total Commitments
 Personnel
  Incentive Compensation
 Commercial Real Estate Loan Portfolio  Unfunded Commitments
 Commercial Real Estate Loans  Unfunded Commitments
 DECEMBER 31
    
    2007
    
    
    2006(in millions)Loans  unfunded portion
    
    $
    3,074
    
    
    $
    4,217Commitment letters(1)
    
    
    139
    
    
    
    65Letters of credit
    
    
    2
    
    
    
    2Total
    
    $
    3,215
    
    
    $
    4,284
 (1)
    
    Commitment letters are pending loans for which commitment letters have been
issued to the borrower. These commitment letters are also disclosed in the Commercial Real Estate
Loans Pending table of this Annual Report, included in the amounts labeled as Commitments Accepted
and Commitments Offered.
 62




---



##### 



Commercial Real Estate Loan Portfolio  Total Commitments
 Total Commercial Real Estate Loan Commitments
 DECEMBER 31
    
    2007
    
    
    2006(in millions)Condominium:Construction
    
    $
    6,445
    
    
    $
    6,566Conversion
    
    
    600
    
    
    
    1,325Inventory
    
    
    66
    
    
    
    51Total condominium
    
    
    7,111
    
    
    
    7,942Other commercial real estate:Office
    
    
    221
    
    
    
    188Hotel
    
    
    124
    
    
    
    128Rental apartment
    
    
    71
    
    
    
    10Other
    
    
    29
    
    
    
    79Loans less than $1 million
    
    
    10
    
    
    
    12Total
    
    $
    7,566
    
    
    $
    8,359
    63




---



##### 



and of and of (continued)
 Commercial Real Estate Loan Portfolio by Size  total commitment
 CONDOMINIUMSCONSTRUCTION
    
    
    CONVERSION
    
    
    INVENTORY
    
    
    OTHER CRE(2)
    
    
    TOTALAS OF DECEMBER 31, 2007(1)
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT(dollars in millions)$180 million and above
    
    
    2
    
    
    $
    372
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    2
    
    
    $
    372$140 million to $180 million
    
    
    13
    
    
    
    1,960
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13
    
    
    
    1,960$100 million to $140 million
    
    
    16
    
    
    
    1,950
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16
    
    
    
    1,950$60 million to $100 million
    
    
    10
    
    
    
    791
    
    
    
    1
    
    
    
    73
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    253
    
    
    
    14
    
    
    
    1,117$20 million to $60 million
    
    
    29
    
    
    
    1,138
    
    
    
    9
    
    
    
    311
    
    
    
    1
    
    
    
    43
    
    
    
    4
    
    
    
    160
    
    
    
    43
    
    
    
    1,652$1 million to $20 million
    
    
    18
    
    
    
    234
    
    
    
    26
    
    
    
    216
    
    
    
    2
    
    
    
    23
    
    
    
    6
    
    
    
    32
    
    
    
    52
    
    
    
    505Loans less than $1 million
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    NM
    
    
    
    10
    
    
    NM
    
    
    
    10Total
    
    
    88
    
    
    $
    6,445
    
    
    
    36
    
    
    $
    600
    
    
    
    3
    
    
    $
    66
    
    
    
    13
    
    
    $
    455
    
    
    
    140
    
    
    $
    7,566
 NM  Not Meaningful(1)
    
    Includes both funded and unfunded commitments, outstanding
commitment letters and letters of credit.(2)
    
    Includes three
loans secured by office properties totaling $221 million in commitments.
 Commercial Real Estate Loan Portfolio by Major Metropolitan Area  total commitment
 CONDOMINIUMSCONSTRUCTION
    
    
    CONVERSION
    
    
    INVENTORY
    
    
    OTHER CRE(2)
    
    
    TOTALAS OF DECEMBER 31, 2007(1)
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT(dollars in millions)Florida:Miami/Southeast Florida
    
    
    17
    
    
    $
    1,840
    
    
    
    2
    
    
    $
    20
    
    
    
    2
    
    
    $
    48
    
    
    
    2
    
    
    $
    41
    
    
    
    23
    
    
    $
    1,949Tampa
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    114
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    114Orlando
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    38
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    38Other Florida
    
    
    4
    
    
    
    329
    
    
    
    3
    
    
    
    75
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7
    
    
    
    404Florida Total
    
    
    21
    
    
    
    2,169
    
    
    
    12
    
    
    
    247
    
    
    
    2
    
    
    
    48
    
    
    
    2
    
    
    
    41
    
    
    
    37
    
    
    
    2,505California:Los Angeles
    
    
    11
    
    
    
    775
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    144
    
    
    
    15
    
    
    
    919San Diego
    
    
    5
    
    
    
    179
    
    
    
    5
    
    
    
    147
    
    
    
    1
    
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    11
    
    
    
    344Sacramento
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    23
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    34
    
    
    
    2
    
    
    
    57San Francisco
    
    
    1
    
    
    
    16
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    16California Total
    
    
    17
    
    
    
    970
    
    
    
    6
    
    
    
    170
    
    
    
    1
    
    
    
    18
    
    
    
    5
    
    
    
    178
    
    
    
    29
    
    
    
    1,336Atlanta
    
    
    11
    
    
    
    574
    
    
    
    2
    
    
    
    27
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13
    
    
    
    601Las Vegas
    
    
    7
    
    
    
    463
    
    
    
    1
    
    
    
    26
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    489New York City
    
    
    7
    
    
    
    473
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7
    
    
    
    473Washington, D.C.(3)
    
    
    3
    
    
    
    133
    
    
    
    4
    
    
    
    35
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    221
    
    
    
    10
    
    
    
    389Chicago
    
    
    6
    
    
    
    296
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    4
    
    
    
    8
    
    
    
    300Phoenix/Scottsdale
    
    
    2
    
    
    
    140
    
    
    
    6
    
    
    
    45
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    185Other (4)
    
    
    14
    
    
    
    1,227
    
    
    
    5
    
    
    
    50
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    20
    
    
    
    1,278Loans less than $1 million
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    NM
    
    
    
    10
    
    
    NM
    
    
    
    10Total
    
    
    88
    
    
    $
    6,445
    
    
    
    36
    
    
    $
    600
    
    
    
    3
    
    
    $
    66
    
    
    
    13
    
    
    $
    455
    
    
    
    140
    
    
    $
    7,566
 NM  Not Meaningful(1)
    
    Includes both funded and unfunded commitments, outstanding
commitment letters and letters of credit.(2)
    
    Includes three loans secured by office properties in
Washington, D.C., totaling $221 million in commitments.(3)
    
    Includes northern Virginia and Maryland loans.(4)
    
    No other metropolitan area exceeds three percent of the total.
 64




---



##### 



CONDOMINIUMSCONSTRUCTION
    
    
    CONVERSION
    
    
    INVENTORY
    
    
    OTHER CRE(2)
    
    
    TOTALAS OF DECEMBER 31, 2006(1)
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT$180 million and above
    
    
    2
    
    
    $
    371
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    2
    
    
    $
    371$140 million to $180 million
    
    
    10
    
    
    
    1,467
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10
    
    
    
    1,467$100 million to $140 million
    
    
    14
    
    
    
    1,733
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14
    
    
    
    1,733$60 million to $100 million
    
    
    21
    
    
    
    1,605
    
    
    
    4
    
    
    
    288
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    242
    
    
    
    28
    
    
    
    2,135$20 million to $60 million
    
    
    32
    
    
    
    1,209
    
    
    
    20
    
    
    
    695
    
    
    
    1
    
    
    
    43
    
    
    
    3
    
    
    
    125
    
    
    
    56
    
    
    
    2,072$1 million to $20 million
    
    
    16
    
    
    
    181
    
    
    
    31
    
    
    
    342
    
    
    
    2
    
    
    
    8
    
    
    
    6
    
    
    
    38
    
    
    
    55
    
    
    
    569Loans less than $1 million
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    NM
    
    
    
    12
    
    
    NM
    
    
    
    12Total
    
    
    95
    
    
    $
    6,566
    
    
    
    55
    
    
    $
    1,325
    
    
    
    3
    
    
    $
    51
    
    
    
    12
    
    
    $
    417
    
    
    
    165
    
    
    $
    8,359
 NM  Not Meaningful(1)
    
    Includes both funded and unfunded commitments, outstanding
commitment letters and letters of credit.(2)
    
    Includes three loans secured by office properties totaling
$188 million in commitments.
 CONDOMINIUMSCONSTRUCTION
    
    
    CONVERSION
    
    
    INVENTORY
    
    
    OTHER CRE(2)
    
    
    TOTALAS OF DECEMBER 31, 2006(1)
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNTFlorida:Miami/Southeast Florida
    
    
    17
    
    
    $
    1,830
    
    
    
    4
    
    
    $
    116
    
    
    
    3
    
    
    $
    51
    
    
    
    1
    
    
    $
    11
    
    
    
    25
    
    
    $
    2,008Tampa
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    168
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    168Orlando
    
    
    
    
    
    
    
    
    
    
    11
    
    
    
    249
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11
    
    
    
    249Other Florida
    
    
    3
    
    
    
    277
    
    
    
    5
    
    
    
    186
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    463Florida Total
    
    
    20
    
    
    
    2,107
    
    
    
    24
    
    
    
    719
    
    
    
    3
    
    
    
    51
    
    
    
    1
    
    
    
    11
    
    
    
    48
    
    
    
    2,888California:Los Angeles
    
    
    10
    
    
    
    587
    
    
    
    1
    
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    107
    
    
    
    14
    
    
    
    708San Diego
    
    
    7
    
    
    
    336
    
    
    
    6
    
    
    
    192
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13
    
    
    
    528Sacramento
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    29
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    38
    
    
    
    2
    
    
    
    67San Francisco
    
    
    3
    
    
    
    77
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    77California Total
    
    
    20
    
    
    
    1,000
    
    
    
    8
    
    
    
    235
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    145
    
    
    
    32
    
    
    
    1,380Atlanta
    
    
    10
    
    
    
    451
    
    
    
    2
    
    
    
    38
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12
    
    
    
    489Las Vegas
    
    
    9
    
    
    
    826
    
    
    
    1
    
    
    
    34
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10
    
    
    
    860New York City
    
    
    14
    
    
    
    675
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    58
    
    
    
    16
    
    
    
    733Washington, D.C. (3)
    
    
    6
    
    
    
    414
    
    
    
    7
    
    
    
    96
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    188
    
    
    
    16
    
    
    
    698Chicago
    
    
    6
    
    
    
    276
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    2
    
    
    
    7
    
    
    
    278Phoenix/Scottsdale
    
    
    2
    
    
    
    143
    
    
    
    6
    
    
    
    102
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    245Other (4)
    
    
    8
    
    
    
    674
    
    
    
    7
    
    
    
    101
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    16
    
    
    
    776Loans less than $1 million
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    NM
    
    
    
    12
    
    
    NM
    
    
    
    12Total
    
    
    95
    
    
    $
    6,566
    
    
    
    55
    
    
    $
    1,325
    
    
    
    3
    
    
    $
    51
    
    
    
    12
    
    
    $
    417
    
    
    
    165
    
    
    $
    8,359
 NM  Not Meaningful(1)
    
    Includes both funded and unfunded commitments, outstanding
commitment letters and letters of credit.(2)
    
    Includes three loans secured by office properties in
Washington, D.C., totaling $188 million in commitments.(3)
    
    Includes northern Virginia and Maryland loans.(4)
    
    No other metropolitan area exceeds three percent of the total.
 65




---



##### 



and of and of (continued)
 Commercial Real Estate Loan Portfolio by Size  funded balance
 CONDOMINIUMSCONSTRUCTION
    
    
    CONVERSION
    
    
    INVENTORY
    
    
    OTHER CRE(2)
    
    
    TOTALAS OF DECEMBER 31, 2007(1)
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT(dollars in millions)$180 million and above
    
    
    2
    
    
    $
    75
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    2
    
    
    $
    75$140 million to $180 million
    
    
    13
    
    
    
    1,094
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13
    
    
    
    1,094$100 million to $140 million
    
    
    16
    
    
    
    936
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16
    
    
    
    936$60 million to $100 million
    
    
    10
    
    
    
    389
    
    
    
    1
    
    
    
    71
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    84
    
    
    
    14
    
    
    
    544$20 million to $60 million
    
    
    29
    
    
    
    787
    
    
    
    9
    
    
    
    303
    
    
    
    1
    
    
    
    43
    
    
    
    4
    
    
    
    119
    
    
    
    43
    
    
    
    1,252$1 million to $20 million
    
    
    18
    
    
    
    180
    
    
    
    26
    
    
    
    210
    
    
    
    2
    
    
    
    21
    
    
    
    6
    
    
    
    31
    
    
    
    52
    
    
    
    442Loans less than $1 million
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    NM
    
    
    
    8
    
    
    NM
    
    
    
    8Total
    
    
    88
    
    
    $
    3,461
    
    
    
    36
    
    
    $
    584
    
    
    
    3
    
    
    $
    64
    
    
    
    13
    
    
    $
    242
    
    
    
    140
    
    
    $
    4,351
 NM  Not Meaningful(1)
    
    The loans listed in the above table are grouped by Total Commitment, however, the
amounts presented represent only the funded balance.(2)
    
    Includes three loans secured by office properties with a total funded balance of
$105 million.
 Commercial Real Estate Loan Portfolio by Major Metropolitan Area  funded balance
 CONDOMINIUMSCONSTRUCTION
    
    
    CONVERSION
    
    
    INVENTORY
    
    
    OTHER CRE(1)
    
    
    TOTALAS OF DECEMBER 31, 2007
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT(dollars in millions)Florida:Miami/Southeast Florida
    
    
    17
    
    
    $
    1,222
    
    
    
    2
    
    
    $
    19
    
    
    
    2
    
    
    $
    48
    
    
    
    2
    
    
    $
    41
    
    
    
    23
    
    
    $
    1,330Tampa
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    114
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    114Orlando
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    38
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    38Other Florida
    
    
    4
    
    
    
    205
    
    
    
    3
    
    
    
    75
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7
    
    
    
    280Florida Total
    
    
    21
    
    
    
    1,427
    
    
    
    12
    
    
    
    246
    
    
    
    2
    
    
    
    48
    
    
    
    2
    
    
    
    41
    
    
    
    37
    
    
    
    1,762California:Los Angeles
    
    
    11
    
    
    
    316
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    52
    
    
    
    15
    
    
    
    368San Diego
    
    
    5
    
    
    
    146
    
    
    
    5
    
    
    
    143
    
    
    
    1
    
    
    
    16
    
    
    
    
    
    
    
    
    
    
    
    11
    
    
    
    305Sacramento
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    22
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    31
    
    
    
    2
    
    
    
    53San Francisco
    
    
    1
    
    
    
    15
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    15California Total
    
    
    17
    
    
    
    477
    
    
    
    6
    
    
    
    165
    
    
    
    1
    
    
    
    16
    
    
    
    5
    
    
    
    83
    
    
    
    29
    
    
    
    741Atlanta
    
    
    11
    
    
    
    165
    
    
    
    2
    
    
    
    27
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13
    
    
    
    192Las Vegas
    
    
    7
    
    
    
    338
    
    
    
    1
    
    
    
    23
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    361New York City
    
    
    7
    
    
    
    280
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7
    
    
    
    280Washington, D.C. (2)
    
    
    3
    
    
    
    82
    
    
    
    4
    
    
    
    32
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    105
    
    
    
    10
    
    
    
    219Chicago
    
    
    6
    
    
    
    123
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    4
    
    
    
    8
    
    
    
    127Phoenix/Scottsdale
    
    
    2
    
    
    
    88
    
    
    
    6
    
    
    
    44
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    132Other (3)
    
    
    14
    
    
    
    481
    
    
    
    5
    
    
    
    47
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    20
    
    
    
    529Loans less than $1 million
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    NM
    
    
    
    8
    
    
    NM
    
    
    
    8Total
    
    
    88
    
    
    $
    3,461
    
    
    
    36
    
    
    $
    584
    
    
    
    3
    
    
    $
    64
    
    
    
    13
    
    
    $
    242
    
    
    
    140
    
    
    $
    4,351
 NM  Not Meaningful(1)
    
    Includes three loans secured by office properties in Washington, D.C.,
with a total funded balance of $105 million.(2)
    
    Includes northern Virginia and Maryland loans.(3)
    
    No other metropolitan area exceeds three percent of the total.
 66




---



##### 



CONDOMINIUMSCONSTRUCTION
    
    
    CONVERSION
    
    
    INVENTORY
    
    
    OTHER CRE(2)
    
    
    TOTALAS OF DECEMBER 31, 2006(1)
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT$180 million and above
    
    
    2
    
    
    $
    19
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    2
    
    
    $
    19$140 million to $180 million
    
    
    10
    
    
    
    425
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10
    
    
    
    425$100 million to $140 million
    
    
    14
    
    
    
    543
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14
    
    
    
    543$60 million to $100 million
    
    
    21
    
    
    
    793
    
    
    
    4
    
    
    
    269
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    79
    
    
    
    28
    
    
    
    1,141$20 million to $60 million
    
    
    32
    
    
    
    706
    
    
    
    20
    
    
    
    659
    
    
    
    1
    
    
    
    43
    
    
    
    3
    
    
    
    49
    
    
    
    56
    
    
    
    1,457$1 million to $20 million
    
    
    16
    
    
    
    129
    
    
    
    31
    
    
    
    309
    
    
    
    2
    
    
    
    8
    
    
    
    6
    
    
    
    34
    
    
    
    55
    
    
    
    480Loans less than $1 million
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    NM
    
    
    
    10
    
    
    NM
    
    
    
    10Total
    
    
    95
    
    
    $
    2,615
    
    
    
    55
    
    
    $
    1,237
    
    
    
    3
    
    
    $
    51
    
    
    
    12
    
    
    $
    172
    
    
    
    165
    
    
    $
    4,075
 NM  Not Meaningful(1)
    
    The loans listed in the above table are grouped by Total Commitment, however, the
amounts presented represent only the funded balance.(2)
    
    Includes three loans secured by office properties with a total funded balance
of $101 million.
 CONDOMINIUMSCONSTRUCTION
    
    
    CONVERSION
    
    
    INVENTORY
    
    
    OTHER CRE(1)
    
    
    TOTALAS OF DECEMBER 31, 2006
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNTFlorida:Miami/Southeast Florida
    
    
    17
    
    
    $
    552
    
    
    
    4
    
    
    $
    112
    
    
    
    3
    
    
    $
    51
    
    
    
    1
    
    
    $
    11
    
    
    
    25
    
    
    $
    726Tampa
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    161
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    161Orlando
    
    
    
    
    
    
    
    
    
    
    11
    
    
    
    233
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11
    
    
    
    233Other Florida
    
    
    3
    
    
    
    155
    
    
    
    5
    
    
    
    175
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    330Florida Total
    
    
    20
    
    
    
    707
    
    
    
    24
    
    
    
    681
    
    
    
    3
    
    
    
    51
    
    
    
    1
    
    
    
    11
    
    
    
    48
    
    
    
    1,450CaliforniaLos Angeles
    
    
    10
    
    
    
    147
    
    
    
    1
    
    
    
    13
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    13
    
    
    
    14
    
    
    
    173San Diego
    
    
    7
    
    
    
    224
    
    
    
    6
    
    
    
    184
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13
    
    
    
    408Sacramento
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    27
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    21
    
    
    
    2
    
    
    
    48San Francisco
    
    
    3
    
    
    
    41
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    41California Total
    
    
    20
    
    
    
    412
    
    
    
    8
    
    
    
    224
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    34
    
    
    
    32
    
    
    
    670Atlanta
    
    
    10
    
    
    
    139
    
    
    
    2
    
    
    
    33
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12
    
    
    
    172Las Vegas
    
    
    9
    
    
    
    413
    
    
    
    1
    
    
    
    34
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10
    
    
    
    447New York City
    
    
    14
    
    
    
    315
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    13
    
    
    
    16
    
    
    
    328Washington, D.C. (2)
    
    
    6
    
    
    
    256
    
    
    
    7
    
    
    
    91
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    101
    
    
    
    16
    
    
    
    448Chicago
    
    
    6
    
    
    
    126
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    2
    
    
    
    7
    
    
    
    128Phoenix/Scottsdale
    
    
    2
    
    
    
    16
    
    
    
    6
    
    
    
    97
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    113Other (3)
    
    
    8
    
    
    
    231
    
    
    
    7
    
    
    
    77
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    16
    
    
    
    309Loans less than $1 million
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    NM
    
    
    
    10
    
    
    NM
    
    
    
    10Total
    
    
    95
    
    
    $
    2,615
    
    
    
    55
    
    
    $
    1,237
    
    
    
    3
    
    
    $
    51
    
    
    
    12
    
    
    $
    172
    
    
    
    165
    
    
    $
    4,075
 NM  Not Meaningful(1)
    
    Includes three loans secured by office properties in Washington, D.C.,
with a total funded balance of $101 million.(2)
    
    Includes northern Virginia and Maryland loans.(3)
    
    No other metropolitan area exceeds three percent of the total.
 67




---



##### 



and of and of (continued)
 Originations
 Originations (1)
 2007
    
    
    2006
    
    
    2007/2006 CHANGEDECEMBER 31
    
    AMOUNT
    
    
    PERCENT
    
    
    AMOUNT
    
    
    PERCENT
    
    
    AMOUNT
    
    
    PERCENT(in millions)Condominium:Construction
    
    $
    1,876
    
    
    
    92
    %
    
    $
    3,255
    
    
    
    83
    %
    
    $
    (1,379
    )
    
    
    (42
    )%Conversion
    
    
    42
    
    
    
    2
    
    
    
    546
    
    
    
    14
    
    
    
    (504
    )
    
    
    (92
    )%Inventory
    
    
    18
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    18
    
    
    NATotal Condominium
    
    $
    1,936
    
    
    
    95
    %
    
    $
    3,801
    
    
    
    97
    %
    
    $
    (1,865
    )
    
    
    (49
    )%Other commercial real estate:Office
    
    
    83
    
    
    
    4
    
    
    
    58
    
    
    
    2
    
    
    
    25
    
    
    
    43
    %Other
    
    
    10
    
    
    
    1
    
    
    
    54
    
    
    
    1
    
    
    
    (44
    )
    
    
    (81
    )%Total Commercial Real Estate
    
    $
    2,029
    
    
    
    100
    %
    
    $
    3,913
    
    
    
    100
    %
    
    $
    (1,884
    )
    
    
    (48
    )%
 NA  Not applicable(1)
    
    Includes commitment increases to existing loans.
 Originations by Quarter (1)
 2007
    
    
    20064Q
    
    
    3Q
    
    
    2Q
    
    
    1Q
    
    
    4Q
    
    
    3Q
    
    
    2Q
    
    
    1Q(in millions)Condominium:Construction
    
    $
    174
    
    
    $
    773
    
    
    $
    622
    
    
    $
    307
    
    
    $
    950
    
    
    $
    855
    
    
    $
    737
    
    
    $
    713Conversion
    
    
    3
    
    
    
    33
    
    
    
    2
    
    
    
    4
    
    
    
    39
    
    
    
    7
    
    
    
    10
    
    
    
    490Inventory
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Condominium
    
    
    195
    
    
    
    806
    
    
    
    624
    
    
    
    311
    
    
    
    989
    
    
    
    862
    
    
    
    747
    
    
    
    1,203Other commercial real estate:Office
    
    
    83
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    58Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    52Total Commercial Real Estate
    
    $
    278
    
    
    $
    806
    
    
    $
    624
    
    
    $
    321
    
    
    $
    991
    
    
    $
    862
    
    
    $
    747
    
    
    $
    1,313
 (1)
    
    Includes commitment increases to existing loans.
  68




---



##### 



Paydowns/Payoffs
 Paydowns / Payoffs
 2007
    
    
    20064Q
    
    
    3Q
    
    
    2Q
    
    
    1Q
    
    
    4Q
    
    
    3Q
    
    
    2Q
    
    
    1Q(in millions)Total Commercial Real Estate
    
    $
    410
    
    
    $
    702
    
    
    $
    617
    
    
    $
    939
    
    
    $
    948
    
    
    $
    791
    
    
    $
    911
    
    
    $
    791
  Pending Commercial Real Estate Loans
 Pending Commercial Real Estate Loans
 2007
    
    
    2006DECEMBER 31
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT(dollars in millions)Commitment Accepted(1)
    
    
    1
    
    
    $
    139
    
    
    
    
    
    
    $
    Commitment Offered(1)
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    65Application Received
    
    
    13
    
    
    
    1,166
    
    
    
    11
    
    
    
    1,003Application Sent Out
    
    
    1
    
    
    
    86
    
    
    
    4
    
    
    
    254Term Sheet Issued
    
    
    18
    
    
    
    1,634
    
    
    
    29
    
    
    
    2,625Total
    
    
    33
    
    
    $
    3,025
    
    
    
    45
    
    
    $
    3,947Condominium:Construction
    
    
    20
    
    
    $
    1,894
    
    
    
    40
    
    
    $
    3,561Conversion
    
    
    1
    
    
    
    57
    
    
    
    2
    
    
    
    152Inventory
    
    
    4
    
    
    
    132
    
    
    
    
    
    
    
    Total Condominium
    
    
    25
    
    
    $
    2,083
    
    
    
    42
    
    
    $
    3,713Other commercial real estate:Office
    
    
    6
    
    
    
    641
    
    
    
    
    
    
    
    Other
    
    
    2
    
    
    
    301
    
    
    
    3
    
    
    
    234Total
    
    
    33
    
    
    $
    3,025
    
    
    
    45
    
    
    $
    3,947
 (1)
    
    These amounts are also included in the Commercial Real Estate Loans  Unfunded
Commitments table of the Annual Report.
 69




---



##### 



and of and of (continued)
  Commercial Lending
 Residential Real Estate and Other Lending
 ASSET QUALITY
 Overview
   Construction Loans
   70




---



##### 



Conversion Loans
   Guarantees
  Payment Guarantees
 71




---



##### 



and of and of (continued)
 Completion Guarantees (For Construction Loans)
 Bad Act Guarantees
 Asset Quality Measures
 DECEMBER 31
    
    2007
    
    
    2006(in thousands)Allowance for loan losses
    
    $
    70,992
    
    
    $
    45,293Allowance for loan losses / Total loans
    
    
    1.61
    %
    
    
    1.09
    %Liability for credit commitment losses
    
    $
    6,000
    
    
    $
    5,500Nonaccrual and loans 90 days or more past due (NPLs)(1)
    
    $
    282,643
    
    
    $
    106,907Other real estate owned (OREO)(1)
    
    $
    36,951
    
    
    $
    8,439Total nonperforming assets (NPLs + OREO)(1)
    
    $
    319,594
    
    
    $
    115,346NPLs / Total loans
    
    
    6.41
    %
    
    
    2.58
    %Troubled debt restructurings (2)
    
    $
    153,453
    
    
    $
    
 (1)
    
    See the Nonaccrual, Past Due, OREO and Restructured
Loans section for additional details.(2)
    
    To the extent not included in either nonaccrual or
loans 90 days or more past due.
 Allowance for Credit Losses
   
    
    Collateral Type  condominium construction, condominium conversion, etc.,
    
    Lien Seniority  1st mortgage or a junior lien (mezzanine loan) on the project, and
    
    Regulatory Loan Rating  Pass/Special Mention, Substandard, Doubtful, and Loss.
  72




---



##### 



73




---



##### 



and of and of (continued)
   DECEMBER 31
    
    2007
    
    
    2006(in thousands)Balance at beginning of period
    
    $
    50,793
    
    
    $
    44,740Provision for credit losses
    
    
    66,000
    
    
    
    7,500Charge-offs:Commercial real estate:Condominium:Construction
    
    
    (7,490
    )
    
    
    Conversion
    
    
    (32,958
    )
    
    
    Inventory
    
    
    
    
    
    
    Total condominium
    
    
    (40,448
    )
    
    
    Other commercial real estate
    
    
    
    
    
    
    (1,512
    )Commercial
    
    
    
    
    
    
    (756
    )Residential real estate and other
    
    
    (179
    )
    
    
    (372
    )Total Charge-Offs
    
    
    (40,627
    )
    
    
    (2,640
    )Recoveries:Commercial real estate
    
    
    
    
    
    
    Commercial
    
    
    133
    
    
    
    8Residential real estate and other
    
    
    693
    
    
    
    1,185Total Recoveries
    
    
    826
    
    
    
    1,193Balance at December 31
    
    $
    76,992
    
    
    $
    50,793
   74




---



##### 



DECEMBER 31
    
    2007
    
    
    2006(in thousands)Allowance for loan losses
    
    $
    70,992
    
    
    $
    45,293Liability for credit commitment losses(1)
    
    
    6,000
    
    
    
    5,500Total
    
    $
    76,992
    
    
    $
    50,793
 (1)
    
    Included as a component of other liabilities.
  DECEMBER 31
    
    2007
    
    
    2006(in thousands)Commercial real estate:Condominium:Construction
    
    $
    40,892
    
    
    $
    24,258Conversion
    
    
    20,332
    
    
    
    15,166Inventory
    
    
    1,032
    
    
    
    550Other commercial real estate
    
    
    2,375
    
    
    
    1,293Commercial
    
    
    2,337
    
    
    
    1,517Residential real estate and other
    
    
    175
    
    
    
    261Unallocated
    
    
    3,849
    
    
    
    2,248Total
    
    $
    70,992
    
    
    $
    45,293
 Commercial Real Estate Loan Charge-off History
 CHARGE-OFFSCONDOMINIUM
    
    
    CONDOMINIUM
    
    
    OTHERPERIOD
    
    CONSTRUCTION
    
    
    CONVERSION
    
    
    CRE
    
    
    TOTAL(in thousands)2007
    
    $
    7,490
    
    
    $
    32,958
    
    
    $
    0
    
    
    $
    40,4482006
    
    
    0
    
    
    
    0
    
    
    
    1,512
    
    
    
    1,5122005
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    02004
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    02003
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    02002
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    02001
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    02000
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    01999
    
    
    0
    
    
    
    0
    
    
    
    61
    
    
    
    611998
    
    
    0
    
    
    
    0
    
    
    
    18
    
    
    
    18Total Charge-offs
    
    $
    7,490
    
    
    $
    32,958
    
    
    $
    1,591
    
    
    $
    42,039
 75




---



##### 



and of and of (continued)
   Nonaccrual, Past Due, OREO and Restructured Loans (last 5 quarters)
 DECEMBER 31
    
    
    SEPTEMBER 30
    
    
    JUNE 30
    
    
    MARCH 31
    
    
    DECEMBER 312007
    
    
    2007
    
    
    2007
    
    
    2007
    
    
    2006(in thousands)NonaccrualCondominium:Construction
    
    $
    105,066
    
    
    $
    24,493
    
    
    $
    
    
    
    $
    
    
    
    $
    Conversion
    
    
    177,086
    
    
    
    174,518
    
    
    
    200,902
    
    
    
    195,723
    
    
    
    72,472Inventory
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total condominium
    
    
    282,152
    
    
    
    199,011
    
    
    
    200,902
    
    
    
    195,723
    
    
    
    72,472Commercial
    
    
    28
    
    
    
    28
    
    
    
    
    
    
    
    
    
    
    
    Residential real estate and other
    
    
    
    
    
    
    
    
    
    
    70
    
    
    
    70
    
    
    
    70Total nonaccrual
    
    
    282,180
    
    
    
    199,039
    
    
    
    200,972
    
    
    
    195,793
    
    
    
    72,542Loans 90 days or more past due
    
    
    463
    
    
    
    737
    
    
    
    641
    
    
    
    310
    
    
    
    34,365Total nonperforming loans
    
    
    282,643
    
    
    
    199,776
    
    
    
    201,613
    
    
    
    196,103
    
    
    
    106,907Other real estate owned (OREO)
    
    
    36,951
    
    
    
    40,387
    
    
    
    40,387
    
    
    
    8,439
    
    
    
    8,439Total Nonperforming Assets
    
    $
    319,594
    
    
    
    240,163
    
    
    
    242,000
    
    
    
    204,542
    
    
    
    115,346Troubled debt restructurings(1)
    
    $
    153,453
    
    
    $
    26,515
    
    
    $
    30,213
    
    
    $
    
    
    
    $
    
 (1)
    
    To the extent not included in either nonaccrual or loans 90 days or more past due.
 76




---



##### 



2007
    
    
    2006CONSTRUCTION
    
    
    CONVERSION
    
    
    TOTAL
    
    
    CONSTRUCTION
    
    
    CONVERSION
    
    
    
    
    
    
    TOTALDECEMBER 31
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT
    
    
    #
    
    
    AMOUNT(dollars in thousands)Florida:Miami
    
    
    2
    
    
    $
    57,520
    
    
    
    1
    
    
    $
    6,731
    
    
    
    3
    
    
    $
    64,251
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    Tampa
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    44,830
    
    
    
    1
    
    
    
    44,830
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    57,835
    
    
    
    1
    
    
    
    57,835
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    50,391
    
    
    
    1
    
    
    
    50,391Florida Total
    
    
    2
    
    
    
    57,520
    
    
    
    3
    
    
    
    109,396
    
    
    
    5
    
    
    
    166,916
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    50,391
    
    
    
    1
    
    
    
    50,391California:Los Angeles
    
    
    1
    
    
    
    29,121
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    29,121
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    San Diego
    
    
    1
    
    
    
    18,425
    
    
    
    1
    
    
    
    49,845
    
    
    
    2
    
    
    
    68,270
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    California Total
    
    
    2
    
    
    
    47,546
    
    
    
    1
    
    
    
    49,845
    
    
    
    3
    
    
    
    97,391
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Phoenix/Scottsdale
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    17,845
    
    
    
    1
    
    
    
    17,845
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    22,081
    
    
    
    1
    
    
    
    22,081Total
    
    
    4
    
    
    $
    105,066
    
    
    
    5
    
    
    $
    177,086
    
    
    
    9
    
    
    $
    282,152
    
    
    
    
    
    
    $
    
    
    
    
    2
    
    
    $
    72,472
    
    
    
    2
    
    
    $
    72,472
   Nonperforming Loans
  77




---



##### 



and of and of (continued)
 Construction Loans
      Conversion Loans
    78




---



##### 



OREO
   Troubled Debt Restructuring
 79




---



##### 



and of and of (continued)
   POTENTIAL PROBLEM LOANS
   Potential Problem Loans
 2007FUNDED
    
    
    TOTALDECEMBER 31
    
    #
    
    
    BALANCE
    
    
    COMMITMENT(dollars in millions)Florida:Miami
    
    
    2
    
    
    $
    70
    
    
    $
    175Other
    
    
    1
    
    
    
    130
    
    
    
    140Florida total
    
    
    3
    
    
    
    200
    
    
    
    315Los Angeles
    
    
    4
    
    
    
    86
    
    
    
    101New York City
    
    
    1
    
    
    
    14
    
    
    
    33Total
    
    
    8
    
    
    $
    300
    
    
    $
    449
 80




---



##### 



Potential Problem Loans  Rollforward
 THREE MONTHS ENDED
    
    
    TWELVE MONTHS ENDEDDECEMBER 31, 2007
    
    
    DECEMBER 31, 2007FUNDED
    
    
    TOTAL
    
    
    
    
    
    
    FUNDED
    
    
    TOTAL#
    
    
    BALANCE
    
    
    COMMITMENT
    
    
    #
    
    
    BALANCE
    
    
    COMMITMENT(dollars in millions)Beginning balance
    
    
    9
    
    
    $
    222
    
    
    $
    277
    
    
    
    6
    
    
    $
    237
    
    
    $
    251Additions
    
    
    6
    
    
    
    246
    
    
    
    389
    
    
    
    8
    
    
    
    300
    
    
    
    449Subtractions:Became a Nonperforming Loan
    
    
    (3
    )
    
    
    (79
    )
    
    
    (86
    )
    
    
    (2
    )
    
    
    (102
    )
    
    
    (111
    )Paid off
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3
    )
    
    
    (99
    )
    
    
    (103
    )Status improved
    
    
    (4
    )
    
    
    (96
    )
    
    
    (131
    )
    
    
    (1
    )
    
    
    (36
    )
    
    
    (37
    )Balance changes
    
    NA
        
    
    7
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance at December 31, 2007
    
    
    8
    
    
    $
    300
    
    
    $
    449
    
    
    
    8
    
    
    $
    300
    
    
    $
    449
 NA  Not applicable
 ACCRUED INTEREST RECEIVABLE AND OTHER ASSETS
 
 DEPOSITS
 Composition of deposits
 2007
    
    
    2006
    
    
    2007/2006 CHANGEDECEMBER 31
    
    AMOUNT
    
    
    PERCENT
    
    
    AMOUNT
    
    
    PERCENT
    
    
    AMOUNT
    
    
    PERCENT(in millions)Retail certificates of deposit
    
    $
    5,319
    
    
    
    70
    %
    
    $
    6,001
    
    
    
    69
    %
    
    $
    (682
    )
    
    
    (11
    )%Money market
    
    
    1,465
    
    
    
    19
    
    
    
    1,698
    
    
    
    20
    
    
    
    (233
    )
    
    
    (14
    )%Demand
    
    
    254
    
    
    
    3
    
    
    
    309
    
    
    
    4
    
    
    
    (55
    )
    
    
    (18
    )%NOW
    
    
    254
    
    
    
    3
    
    
    
    285
    
    
    
    3
    
    
    
    (31
    )
    
    
    (11
    )%Brokered certificates of deposit
    
    
    205
    
    
    
    3
    
    
    
    280
    
    
    
    3
    
    
    
    (75
    )
    
    
    (27
    )%Savings
    
    
    123
    
    
    
    2
    
    
    
    132
    
    
    
    1
    
    
    
    (9
    )
    
    
    (7
    )%Total
    
    $
    7,620
    
    
    
    100
    %
    
    $
    8,705
    
    
    
    100
    %
    
    $
    (1,085
    )
    
    
    (12
    )%
 81




---



##### 



and of and of (continued)
   LONG
 TERM DEBT  SUBORDINATED DEBENTURES (TRUST PREFERRED)
      OTHER BORROWINGS
  82




---



##### 



SHAREHOLDERS EQUITY
  DECEMBER 31
    
    2007
    
    
    2006(in thousands)Common stock
    
    $
    2,751
    
    
    $
    2,812Surplus
    
    
    44,602
    
    
    
    31,783Equity awards outstanding
    
    
    8,215
    
    
    
    9,040Retained earnings
    
    
    713,416
    
    
    
    746,291Accumulated other comprehensive income
    
    
    20,413
    
    
    
    54,601Total Shareholders Equity
    
    $
    789,397
    
    
    $
    844,527
      83




---



##### 



and of and of (continued)
  BANK HOLDING COMPANY
 Sources
     84




---



##### 



Uses
 CORUS BANK, N.A.
 Sources
 Uses
   Prompt Corrective Action
 85




---



##### 



and of and of (continued)
 OFF-BALANCE SHEET ARRANGEMENTS
  CONTRACTUAL OBLIGATIONS AND COMMITMENTS
  PAYMENTS DUE BY PERIODLESS THAN
    
    
    
    
    
    
    
    
    
    
    MORE THANCONTRACTUAL OBLIGATIONS
    
    1 YEAR
    
    
    1-3 YEARS
    
    
    3-5 YEARS
    
    
    5 YEARS
    
    
    TOTAL(in thousands)Deposits without a stated maturity
    
    $
    2,095,882
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    2,095,882Certificates of deposit
    
    
    5,382,732
    
    
    
    136,538
    
    
    
    4,523
    
    
    
    7
    
    
    
    5,523,800Long-term debt  subordinated
debentures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    404,647
    
    
    
    404,647Other borrowings
    
    
    2,038
    
    
    
    52,907
    
    
    
    
    
    
    
    
    
    
    
    54,945Minimum fixed lease obligations
    
    
    709
    
    
    
    1,513
    
    
    
    1,496
    
    
    
    2,449
    
    
    
    6,167Purchase obligations
    
    
    1,662
    
    
    
    3,491
    
    
    
    3,764
    
    
    
    3,768
    
    
    
    12,685Total
    
    $
    7,483,023
    
    
    $
    194,449
    
    
    $
    9,783
    
    
    $
    410,871
    
    
    $
    8,098,126
   (in thousands)Standby letters of credit
    
    $
    5,787Commitment letters
    
    
    139,500Unfunded loan commitments
    
    
    3,083,254Total Unfunded Commitments
    
    $
    3,228,541
 Refer to Note 13 in the Notes to Consolidated Financial Statements for additional detail.
 86




---



##### 



ALLOWANCE FOR CREDIT LOSSES
      87




---



##### 



and
  INTEREST RATE RISK & ASSET/LIABILITY MANAGEMENT
   GENERAL DESCRIPTION OF INTEREST RATE SENSITIVITY
    88




---



##### 



DEPOSIT PRICING
   89




---



##### 



and (continued)
  Rate Ramp Amount (1)
    
    -200 bp
    
    -100 bp
    
    0 bp
    
    +100 bp
    
    +200 bpPercent change in the next twelve months
net interest income vs. constant rates:December 31, 2007
    
    
    (13.7
    )%
    
    
    (8.8
    )%
    
    
    
    
    
    
    9.3
    %
    
    
    18.7
    %December 31, 2006(2)
    
    
    (9.4
    )%
    
    
    (3.9
    )%
    
    
    
    
    
    
    4.0
    %
    
    
    8.1
    %
 (1)
    
    These ramps represent hypothetical gradual and sustained changes from rates as of
December 31, 2006 and December 31, 2007.(2)
    
    The 2006 results have been revised to reflect interest rate changes based on ramp
scenarios (as opposed to the previously presented shock scenarios).
    90




---



##### 




    
    The impact on Corus of the problems in the residential housing and mortgage lending markets,
including its impact on Corus loan originations, credit quality and charge-offs;
    
    Continued financial support provided by borrowers, or second mortgage holders, for
underperforming loans;
    
    The Companys concentration in condominium construction lending;
    
    The Companys geographic concentration;
    
    The impact of weak sales and/or cancelled contracts on loan paydowns and, ultimately,
collateral valuations;
    
    The borrowers abilities to complete building construction on time and within budget;
    
    The risk that originations in the office construction sector will not increase;
    
    The interplay of originations, construction loan funding, and loan paydowns on loan balances;
    
    The risk that higher interest rates could dampen housing prices as well as the demand for
housing, which could therefore adversely affect Corus business;
    
    The occurrence of one or more catastrophic events that may directly or indirectly, affect
properties securing Corus loans. These events include, but are not limited to, earthquakes,
hurricanes, and acts of terrorism;
    
    The risk that pending loans which reach the Applications Received stage will not ultimately
close;
    
    The risk that managements estimate of the adequacy of the allowance for credit losses could
be incorrect;
    
    The effect of competitors pricing initiatives on loan and deposit products;
    
    Corus ability to attract and retain experienced and qualified personnel;
    
    Corus ability to access the capital markets, including Trust Preferred securities;
    
    Restrictions that may be imposed by any of the various regulatory agencies that have
authority over the Company or any of its subsidiaries;
    
    Changes in the accounting policies, laws, regulations, and policies governing financial
services companies.
  91




---



##### 



YEARS ENDED DECEMBER 31
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004(dollars in thousands, except per share data)CONDENSED INCOME STATEMENTSNet interest income
    
    $
    288,258
    
    
    $
    341,901
    
    
    $
    249,658
    
    
    $
    151,464Provision for credit losses
    
    
    66,000
    
    
    
    7,500
    
    
    
    6,000
    
    
    
    Noninterest income
    
    
    18,371
    
    
    
    19,201
    
    
    
    27,949
    
    
    
    51,415Noninterest expense
    
    
    77,108
    
    
    
    65,881
    
    
    
    61,322
    
    
    
    56,273Income Before Income Taxes
    
    
    163,521
    
    
    
    287,721
    
    
    
    210,285
    
    
    
    146,606Income tax expense
    
    
    57,317
    
    
    
    98,277
    
    
    
    73,056
    
    
    
    48,667Net Income
    
    $
    106,204
    
    
    $
    189,444
    
    
    $
    137,229
    
    
    $
    97,939SELECTED
PER - SHARE DATA:(1)Diluted earnings
    
    $
    1.85
    
    
    $
    3.28
    
    
    $
    2.38
    
    
    $
    1.70Cash dividends declared on common stock(2)
    
    
    2.000
    
    
    
    0.900
    
    
    
    0.700
    
    
    
    0.625Book value at year-end
    
    
    14.35
    
    
    
    15.01
    
    
    
    12.35
    
    
    
    10.79Market price at year-end
    
    
    10.67
    
    
    
    23.07
    
    
    
    28.14
    
    
    
    24.01AVERAGES:Assets
    
    $
    9,505,048
    
    
    $
    9,497,310
    
    
    $
    6,648,237
    
    
    $
    4,050,352Loans, net of unearned income
    
    
    4,066,295
    
    
    
    4,456,799
    
    
    
    3,551,877
    
    
    
    2,461,790Earning assets
    
    
    9,387,472
    
    
    
    9,376,517
    
    
    
    6,522,428
    
    
    
    3,953,325Deposits
    
    
    8,138,852
    
    
    
    8,244,985
    
    
    
    5,625,268
    
    
    
    3,184,367Long-term obligations
    
    
    450,607
    
    
    
    389,056
    
    
    
    309,421
    
    
    
    233,045Shareholders equity
    
    
    840,125
    
    
    
    759,213
    
    
    
    630,401
    
    
    
    563,446AT YEAR - END:Assets
    
    $
    8,926,577
    
    
    $
    10,057,791
    
    
    $
    8,458,740
    
    
    $
    5,017,787Loans, net of unearned income
    
    
    4,409,387
    
    
    
    4,141,979
    
    
    
    4,524,511
    
    
    
    2,793,828Earning assets
    
    
    8,781,386
    
    
    
    9,892,946
    
    
    
    8,292,149
    
    
    
    4,946,297Deposits
    
    
    7,619,682
    
    
    
    8,704,675
    
    
    
    7,265,829
    
    
    
    4,096,816Long-term obligations
    
    
    457,554
    
    
    
    422,329
    
    
    
    377,404
    
    
    
    260,658Shareholders equity
    
    
    789,397
    
    
    
    844,527
    
    
    
    689,775
    
    
    
    599,591(CHARGE - OFFS)/RECOVERIES 
COMMERCIAL REAL ESTATE LOAN S( 3 )Charge-offs
    
    $
    (40,448
    )
    
    $
    (1,512
    )
    
    $
    
    
    
    $
    Recoveries
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net (Charge-offs)/Recoveries
    
    $
    (40,448
    )
    
    $
    (1,512
    )
    
    $
    
    
    
    $
    SIGNIFICANT RATIOS:Return on average assets
    
    
    1.1
    %
    
    
    2.0
    %
    
    
    2.1
    %
    
    
    2.4
    %Return on average equity
    
    
    12.6
    %
    
    
    25.0
    %
    
    
    21.8
    %
    
    
    17.4
    %Efficiency
ratio (4)
    
    
    23.8
    %
    
    
    18.4
    %
    
    
    22.9
    %
    
    
    33.5
    %Net interest margin
    
    
    3.1
    %
    
    
    3.7
    %
    
    
    3.9
    %
    
    
    3.9
    %Nonaccrual and Loans 90 days or more past due
(NPLs)/Total loans
    
    
    6.4
    %
    
    
    2.6
    %
    
    
    0.0
    %
    
    
    0.2
    %Allowance for loan losses/NPLs
    
    
    25.1
    %
    
    
    42.4
    %
    
    
    638.6
    %
    
    
    571.8
    %Allowance for loan losses/Total loans
    
    
    1.6
    %
    
    
    1.1
    %
    
    
    0.9
    %
    
    
    1.2
    %CAPITAL RATIOS:Tier 1 leverage
    
    
    11.4
    %
    
    
    10.6
    %
    
    
    10.7
    %
    
    
    15.7
    %Tier 1 risk-based capital
    
    
    14.4
    %
    
    
    13.7
    %
    
    
    11.5
    %
    
    
    15.4
    %Total risk-based capital
    
    
    17.6
    %
    
    
    16.3
    %
    
    
    14.4
    %
    
    
    18.5
    %COMMON SHARE DATA :( 1 )Weighted average fully diluted shares
    
    
    57,265
    
    
    
    57,705
    
    
    
    57,710
    
    
    
    57,636Common shares outstanding at year-end
    
    
    55,012
    
    
    
    56,246
    
    
    
    55,849
    
    
    
    55,592
 (1)
    
    All amounts have been restated to reflect a 2-for-1stock
split on 5/18/06 and 12/15/03.(2)
    
    The 2007 amount includes $1.00 per common share
special cash dividend declared 6/21/07.(3)
    
    This section contains charge-off/recovery history for commercial real estate loans
only and is not representative of the total charge-off/recovery history for all loan types.(4)
    
    Total noninterest expense less goodwill amortization/impairment divided by the
sum of fully taxable equivalent net interest income and noninterest income excluding securities
gains and losses and one-time gains on the sale of businesses.
 92




---



##### 



2003
    
    
    2002
    
    
    2001
    
    
    2000
    
    
    1999
    
    
    1998$
    123,427
    
    
    $
    98,287
    
    
    $
    107,709
    
    
    $
    121,051
    
    
    $
    106,131
    
    
    $
    98,220
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10,00016,920
    
    
    
    23,079
    
    
    
    25,716
    
    
    
    47,260
    
    
    
    18,948
    
    
    
    25,66652,533
    
    
    
    47,472
    
    
    
    51,100
    
    
    
    54,654
    
    
    
    63,096
    
    
    
    51,88987,814
    
    
    
    73,894
    
    
    
    82,325
    
    
    
    113,657
    
    
    
    61,983
    
    
    
    61,99729,404
    
    
    
    24,580
    
    
    
    28,142
    
    
    
    38,903
    
    
    
    21,257
    
    
    
    21,369$
    58,410
    
    
    $
    49,314
    
    
    $
    54,183
    
    
    $
    74,754
    
    
    $
    40,726
    
    
    $
    40,628$
    1.02
    
    
    $
    0.86
    
    
    $
    0.95
    
    
    $
    1.31
    
    
    $
    0.71
    
    
    $
    0.690.415
    
    
    
    0.159
    
    
    
    0.154
    
    
    
    0.149
    
    
    
    0.144
    
    
    
    0.1399.74
    
    
    
    8.54
    
    
    
    7.96
    
    
    
    7.11
    
    
    
    5.70
    
    
    
    5.4715.51
    
    
    
    10.92
    
    
    
    11.35
    
    
    
    12.37
    
    
    
    6.00
    
    
    
    8.06$
    2,984,021
    
    
    $
    2,639,429
    
    
    $
    2,672,971
    
    
    $
    2,518,960
    
    
    $
    2,530,782
    
    
    $
    2,417,6472,000,505
    
    
    
    1,608,541
    
    
    
    1,615,665
    
    
    
    1,807,453
    
    
    
    1,640,101
    
    
    
    1,525,3492,890,897
    
    
    
    2,546,840
    
    
    
    2,577,433
    
    
    
    2,398,989
    
    
    
    2,419,667
    
    
    
    2,311,5622,357,707
    
    
    
    2,081,956
    
    
    
    2,160,333
    
    
    
    2,081,986
    
    
    
    2,115,575
    
    
    
    2,031,19883,322
    
    
    
    50,252
    
    
    
    36,668
    
    
    
    40,000
    
    
    
    40,000
    
    
    
    40,000504,576
    
    
    
    467,369
    
    
    
    424,427
    
    
    
    346,880
    
    
    
    326,776
    
    
    
    295,854$
    3,643,830
    
    
    $
    2,617,050
    
    
    $
    2,659,322
    
    
    $
    2,598,467
    
    
    $
    2,378,544
    
    
    $
    2,577,4602,433,771
    
    
    
    1,741,969
    
    
    
    1,475,245
    
    
    
    1,551,880
    
    
    
    1,727,357
    
    
    
    1,551,5873,560,421
    
    
    
    2,539,400
    
    
    
    2,507,403
    
    
    
    2,458,499
    
    
    
    2,265,687
    
    
    
    2,470,8652,846,543
    
    
    
    2,059,773
    
    
    
    2,121,456
    
    
    
    2,107,630
    
    
    
    1,964,420
    
    
    
    2,154,676207,500
    
    
    
    45,375
    
    
    
    48,000
    
    
    
    40,000
    
    
    
    40,000
    
    
    
    40,000546,180
    
    
    
    482,041
    
    
    
    450,886
    
    
    
    402,353
    
    
    
    327,825
    
    
    
    318,130$
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    (61
    )
    
    $
    (18
    )
    
    
    
    17
    
    
    
    10
    
    
    
    42
    
    
    
    123
    
    
    
    166$
    
    
    
    $
    17
    
    
    $
    10
    
    
    $
    42
    
    
    $
    62
    
    
    $
    1482.0
    %
    
    
    1.9
    %
    
    
    2.0
    %
    
    
    3.0
    %
    
    
    1.6
    %
    
    
    1.7
    %11.6
    %
    
    
    10.6
    %
    
    
    12.8
    %
    
    
    21.6
    %
    
    
    12.5
    %
    
    
    13.7
    %37.5
    %
    
    
    40.9
    %
    
    
    40.1
    %
    
    
    38.1
    %
    
    
    41.0
    %
    
    
    41.5
    %4.3
    %
    
    
    3.9
    %
    
    
    4.3
    %
    
    
    5.1
    %
    
    
    4.5
    %
    
    
    4.3
    %0.4
    %
    
    
    0.4
    %
    
    
    0.4
    %
    
    
    0.3
    %
    
    
    0.7
    %
    
    
    1.1
    %399.1
    %
    
    
    567.4
    %
    
    
    705.1
    %
    
    
    779.4
    %
    
    
    262.4
    %
    
    
    211.9
    %1.5
    %
    
    
    2.1
    %
    
    
    2.7
    %
    
    
    2.6
    %
    
    
    1.9
    %
    
    
    2.3
    %18.7
    %
    
    
    17.3
    %
    
    
    15.4
    %
    
    
    14.0
    %
    
    
    11.9
    %
    
    
    10.3
    %17.9
    %
    
    
    16.8
    %
    
    
    19.4
    %
    
    
    16.0
    %
    
    
    15.3
    %
    
    
    15.0
    %20.5
    %
    
    
    18.9
    %
    
    
    22.0
    %
    
    
    18.6
    %
    
    
    17.8
    %
    
    
    18.1
    %57,406
    
    
    
    57,180
    
    
    
    57,238
    
    
    
    57,209
    
    
    
    57,856
    
    
    
    59,09456,074
    
    
    
    56,477
    
    
    
    56,639
    
    
    
    56,573
    
    
    
    57,477
    
    
    
    58,205
 93




---



##### 



COMPARISON OF FIVE YEAR CUMULATIVE TOTAL RETURN AMONG
CORUS BANKSHARES, INC., NASDAQ STOCK MARKET (U.S.),
AND NASDAQ BANK STOCKS
 
 Dollar Value of Investment at December 31
 2002
    
    
    2003
    
    
    2004
    
    
    2005
    
    
    2006
    
    
    2007NASDAQ Stock Market (U.S.)
    
    $
    100
    
    
    $
    150
    
    
    $
    163
    
    
    $
    166
    
    
    $
    183
    
    
    $
    198NASDAQ Bank Stocks
    
    
    100
    
    
    
    129
    
    
    
    147
    
    
    
    144
    
    
    
    161
    
    
    
    128Corus Bankshares, Inc.
    
    
    100
    
    
    
    147
    
    
    
    235
    
    
    
    283
    
    
    
    239
    
    
    
    125
 94




---



##### 



Joseph C. Glickman
    
    Robert J. Buford
    
    Michael J. McClure*Chairman of the Board
    
    President and Chief Executive Officer
    
    Executive Vice President andCorus Bankshares, Inc.
    
    Planned Realty Group, Inc.
    
    Chief Financial Officerand Affiliates
    
    Affirmative Insurance Holdings, Inc.Robert J. GlickmanPresident and Chief Executive Officer
    
    Kevin R. Callahan*
    
    Peter C. RobertsCorus Bankshares, Inc.
    
    Chairman of the Board and
    
    Chief Executive Officer  AmericasChief Executive Officer
    
    Jones Lang LaSalle, Inc.Affirmative Insurance Holdings, Inc.Rodney D. Lubeznik*President and Chief Executive OfficerRestaurant Management Corp.
 *
    
    Audit Committee Member
  Robert J. Glickman
    
    Michael E. Dulberg
    
    Joel C. SolomonPresident and Chief Executive Officer
    
    Senior Vice President and
    
    Senior Vice President -Chief Accounting Officer
    
    Commercial LendingRandy P. CurtisExecutive Vice President -
    
    Michael W. Jump
    
    Timothy J. StodderRetail Banking
    
    Senior Vice President -
    
    Senior Vice President -Operations
    
    Commercial LendingMichael G. SteinExecutive Vice President -
    
    Terence W. Keenan
    
    Daniel A. NiedermeyerCommercial Lending
    
    Senior Vice President -
    
    First Vice President -Commercial Lending
    
    Consumer Lending/OperationsTim H. TaylorExecutive Vice President and
    
    Richard J. KoretzChief Financial Officer
    
    Senior Vice President -Finance
 95




---



##### 



John M. Barkidjija
    
    John P. Ascher
    
    Mary S. KoehlerSenior Vice President -
    
    First Vice President -
    
    First Vice President -Commercial Lending
    
    Commercial Lending
    
    Retail BankingBrian J. Brodeur
    
    William W. Baird
    
    Marilyn Klehm MartinSenior Vice President -
    
    First Vice President -
    
    First Vice President -Commercial Lending
    
    Operations
    
    OperationsDwight L. Frankfather
    
    Yolanda M. Deen
    
    Mary Kay PhillipsSenior Vice President -
    
    First Vice President -
    
    First Vice President -Commercial Lending
    
    Retail Banking
    
    Retail BankingJohn R. Markowicz
    
    Kathy M. Dotto
    
    David R. PlogerSenior Vice President -
    
    First Vice President -
    
    First Vice President -Commercial Lending
    
    Commercial Lending
    
    Commercial LendingRosa M. Paz
    
    James J. Dow
    
    William A. ReynoldsSenior Vice President -
    
    First Vice President -
    
    First Vice President -Commercial Lending
    
    Commercial Lending
    
    OperationsPeter R. Freund
    
    Daniel P. SemenakFirst Vice President -
    
    First Vice President -Commercial Lending
    
    FinanceKeith R. Gibbons
    
    Kari B. SheinfeldFirst Vice President -
    
    First Vice President -Commercial Lending
    
    Commercial LendingMichelle Hassen
    
    John C. ZanderFirst Vice President -
    
    First Vice President -BSA/AML/Compliance
    
    Commercial Lending
 96




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##### 



CORPORATE OFFICES
    
    ACCESS TO REPORTS3959 N. Lincoln Avenue
Chicago, Illinois 60613
Telephone 773-832-3088
www.corusbank.com
    
    The Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q,
     current reports on Form 8-K, and all amendments to those reports are made
                                   available free of charge through the Company's Web site at www.corusbank.com
      as soon as reasonably practicable after such material is electronically filed with or
               furnished to the Securities and Exchange Commission. Copies will be available
                                   upon written request to the Chief Financial Officer of the Company. A charge will
                                   be made for exhibits requested.ANNUAL MEETING
    
    Doubletree Hotel &
    
    9599 Skokie Boulevard10:00 a.m., April 15, 2008
    
    Conference Center
    
    Skokie, Illinois 60077Telephone 847-679-7000TRANSFER AGENT AND REGISTRARBNY Mellon Shareowner Services500 Ross Street, 6th FloorPittsburgh, PA 15262-0001866-282-3950
    
    Toll-free number for shareholders800-231-5469
    
    TDD (Telecommunications Device for the Deaf)
number for hearing/speech impaired shareholderswww.melloninvestor.com/isd
    
    Mellon Web siteshrrelations@mellon.com
    
    Mellon E-mail Contact




---



##### 



WWW.CORUSBANK.COM
3959 North Lincoln Avenue Chicago,
Illinois 60613
Telephone 773-832-3088